Fixed assets purchased on hire purchased on hire purchase terms are recorded at
A)Net realization value
B)Cash value
C)Hire purchase price
D)Cost price

Question

Quizplus · Accepted Answer

Fixed assets purchased on hire purchase terms are recorded at their cash value, which is the cash price equivalent of the asset. This is because the cash value represents the fair value of the asset at the time of acquisition, excluding any interest or financing charges included in the hire purchase price.

Fixed Assets Purchased on Hire Purchased on Hire Purchase Terms