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Hire purchases an arrangement for buying where the buyer makes an initial downpayment

for an item purchased and pays the balance plus interest in regular instalments while
having

the use of it. It is usually applicable in the buying and selling of expensive consumer goods
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like machines, vehicles, buildings etc.

Hire vendor a person who delivers the goods to the hire purchaser with an intention to sell

the goods under the hire purchase agreement.
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Hire charges the amount of money it costs to buy an item under hire purchase agreement.

Income statement a financial statement that shows the company’s financial performance.

It usually indicates the company’s income, expenses and profit.

Insolvency a situation where a debtor cannot pay the debts they owe.

Interest a fee paid by a business to the lender (creditor), as a return on borrowed fund.

Inventory are the items, goods, merchandise, and materials held by a business for selling

in the market to earn a profit.

International Accounting Standards (IASs) refer to internationally-agreed principles
and procedures guiding the preparation of financial statements by the company. How
does this concept relate to international financial reporting standards (IFRS)? Since
2001, those standards have been released under the new name IFRS. In this process,
several IASs were replaced with IFRS but some were maintained until to date, they are
relevantly used in tandem with IFRS.

International financial reporting standards (IFRS) refer to a set of accounting rules
governing the preparation and reporting of financial statements of public companies with
the objectives of making them consistent, transparent, and easily comparable around
the world.

Investment is an asset or item acquired to generate income or appreciation. The latter
refers to an increase in the value of an asset over time. The asset that has been acquired
as an investment will be maintained to use in the future to create wealth rather than use
or consume it.

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