Chapter-2
LEASE AND HIRE PURCHASE
Review Questions
A. Short Answer Type Questions
1. What do you mean by leasing?
Answer:
2. What are the two basic types of leasing?
Answer:
3.Give any two factors influencing lease.
Answer:4. What is operating lease?
Answer:5. Write any two advantages of leasing.
Answer:6. What do you mean by balloon payment method?
Answer:7. What is steady payment method.
Answer:8 . What do you mean by hire purchase?
Answer:9. What is the concept of hire purchase?
Answer:10. Write any three characteristics of hire purchase.
Answer:11. What are the legal aspects of hire purchase?
Answer:12. What are the tax implications of hire purchase.
Answer:B. Long Answer Type Questions
1. What do you understand by leasing? State its advantages and limitations.
Answer:2. Discuss the various methods of evaluating the leasing proposal.
Answer:3. Discuss the various kinds of leasing and also suggest a procedure for determining lease rentals.
Answer:4. "Leasing is beneficial to both, the lessee as well as the lessor". Examine.
Answer:5. What do you understand by Hire Purchase? Is there any difference between leasing and hire purchase?
Answer:6 . Leasing finance has proved its unique adaptability to various financial problems. Its use is being rapidly extended both to new industries as also to new applications. Discuss its merits as a source of finance.
Answer:7. Write your comments upon accounting policies and disclosures in relation to finance leases and operating leases prescribed in AS-19.
Answer:Type-Bharat Kalita
