PPSC FPSC KPPSC Commerce Solved MCQs Practice Test 16

1- A bill of exchange contains:

A). An unconditional order✔️

B). A promise

C). A request to deliver goods

D). A conditional order

2- A bill of exchange is drawn by:

A). A debtor

B). A creditor✔️

C). A holder

D). Endorsee

3- Bill receivable account is a:

A). Nominal Account

B). Personal Account✔️

C). Real Account

D). Expenses Account

4- At the time of drawing a bill, the drawer credits:

A). Debtors account✔️

B). Creditors account

C). Bill receivable account

D). Suppliers account

5- When a bill is discharged, the acceptor debits:

A). Creditors account

B). Cash account

C). Bill payable account✔️

D).Bill receivable account

6- At the time of endorsement of a bill, the drawer credits:

A). The drawee Account

B). The endorsee’ s personal Account

C). Bill receivable account✔️

D). None of the above

7- At the time of endorsement of a bill, the drawee debits:

A). Bill payable account

B). Other party’s account

C). No account ( No entry)✔️

D). None of the above

8-If a bill is dishonoured, when presented for payment by third party, the drawer will debit:

A). Acceptor’s account✔️

B). Third party’s account

C). Neither of that two

D). Endorsee

9- When noting charges are paid by the bank at the time of the dishonor of the bill, the drawee credits:

A). Bill payable

B). Discount account

C). Noting charges account

D). Drawer’s account✔️

10- The person to whom a bill is addressed is the:

A). Debtor✔️

B). Creditor

C). Holder

D). Agent

11- A bill from the point of view of a creditor is called a:

A). Bill payable

B). Bill receivable✔️

C). Bill acceptable

D). Bill rejectable

12- When the drawer discounts a bill, he debits:

A). Discount account✔️

B). Endorserrient account

C). Interest account

D). Drawer’s account

13- Refusal by the acceptor to make payment of the bill on the maturity date is called:

A). Retirement of the bill

B). Dishonour of the bill✔️

C). Collection of the bill

D). Honour of the bill

14- When noting charges are paid at the time of dishonour of the bill, the drawee always debits:

A). Noting charges account✔️

B). Interest account

C). Discount account

D). Drawer’s account

15- In case of bill of exchange, there are minimum:

A). Two parties✔️

B). Three parties

C). Four parties

D). One party

16- Bill of exchange is a conventent method for the transfer of:

A). Cash

B). Goods

C). Debt✔️

D). Investment

17- The period of time after which a bill becomes payable is called:

A). Tenor✔️

B). Usance

C). Grace days

D). None of the above

18- When a bill is accepted without any condition to the” order of the drawer, it is called:

A). Qualified acceptance

B). General Acceptance✔️

C). Unqualified acceptance

D). None of the above

19- In case of accommodation bills, if one party becomes insolvent, then the short remittance is credited to:

A). Deficiency account✔️

B). Bad debts account

C). Insolvency account

D). Solvency account

20- Accommodation bill are drawn, accepted and endorsed:

A). Without any consideration✔️

B). For some consideration

C). Half for consideration

D). None of the above

21- Amount of noting charges is the actual expense of:

A). Drawee✔️

B). Drawer

C). Banker

D). Endorsee

22- The amount deducted by bank of the bill from the face value of the bill is called:

A). Interest

B). Rebate

C). Discount✔️

D). Commission

23- The procedure by which a bill is transferred from one person to another person for the statement of debts is called:

A). Retirement

B). Endorsement✔️

C). Renewal

D). None of the above

24- When the bill is dishonoured bill payable account is debited in the books of the:

A). Bank

B). Drawer

C). Drawee✔️

D). Endorsee

25- When the bill is dishonoured acceptor’s account is debited in the books of the:

A). Bank

B). Drawer✔️

C). Drawee

D). Endorsee

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