PPSC FPSC KPPSC Commerce Solved MCQs Practice Test 17

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

Useful Links:-

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