1- When an endorsed bill is dishonored endorsee’s or creditor’s account is in the books of the:
A). Bank
B). Drawee
C). Drawer✔️
D). Agent
2- The drawer always debits acceptor’s account for noting charges paid on:
A). Honour of a bill
B). Endorsement of a bill
C). Dishonour of a bill✔️
D). None of the above
3- When a bill is renewed, interest account is credited in the books of the:
A). Drawer✔️
B). Drawee
C). Bank
D). None of the above
4- When a party becomes insolvent, the bill accepted by him is treated as:
A). Honoured
B). Dishonoured✔️
C). Discounted
D). None of the above
5- Interest on renewal of a bill is a revenue to the:
A). Drawer✔️
B). Drawee
C). Endorsee
D). Acceptor
6- Interest on renewal of bill is a expense to the:
A). Drawer
B). Drawee✔️
C). Endorsee
D). Seller
7- In case of discounting of bill with the bank, the acceptor will passed:
A). Discounting
B). Acceptance entry
C). No entry✔️
D). None of the above
8- In case of retiring a bill, rebate is treated as expense for the:
A). Holder✔️
B). Acceptor
C). Banker
D). Agent
9- The rebate, in case of retiring of a bill is revenue for the:
A). Holder
B). Acceptor✔️
C). Banker
D). Agent
10- When bills are drawn in one country and accepted and payable in another country are called:
A). Inland bills
B). Local bills
C). Foreign bills✔️
D). None of the above
11- When bills are drawn in a country upon persons living in the same country or made payable in the same country are known as:
A). Inland✔️
B). Toreign bills
C). Overseas bills
D). None of the above
12- A promissory note contains:
A). A conditional order
B). A promise✔️
C). A request to deliver goods
D). None of the above
13- A promissory note is written by:
A). Debtor✔️
B). Creditor
C). Bank
D). Agent
14- Promissory note is a written promise between:
A). Four parties
B). Three parties
C). Two parties✔️
D). Five parties
15- A promissory note should be:
A). Oral
B). Written✔️
C). Verbal
D). None of the above
16- Accommodation bills are drawn and accepted for:
A). Financial assistance✔️
B). Consideration
C). Debt
D). Loan
17- In case of bill of exchange for obtaining the debt, legal action can be restored by:
A). Drawer✔️
B). Drawee
C). Banker
D). Endorsee
18- The due date of a bill of exchange, when the amount of the bill is payable by the drawee, is called the:
A). Acceptance date
B). Maturity date✔️
C). Dishonored date
D). Bill written date
19- In case of bill of exchange, every bill has to be accepted by the:
A). Drawer
B). Bank
C). Drawee✔️
D). Agent
20- A liability that will only arise if a certain event occurs, is called:
A). Contingent liability✔️
B). Mutual liability
C). Future liability
D). None of the above
21- When a bill is dishonored, the holder of the bill, goes to, an official called:
A). Clerk
B). Notary public✔️
C). Inspector
D). Agent
22- In case of dishonour, the notary public will charge a small fee from the holder, is known as:
A). Interest
B). Rebate
C). Noting charges✔️
D). Discount
23- All cash receipts and cash payments are recorded in:
A). Sales book
B). Purchases book
C). Cash book✔️
D). None of the above
24- The book is used to record all credit purchases is called:
A). Purchases book✔️
B). Purchases return book
C). Cash book
D). Creditor book
25- All the transactions, related to credit sales recorded in:
A). Sales return book
B). Sales book✔️
C). Cash book
D). Debtor’s book
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