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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