Financial Accounting

Bills of Exchange MCQs with Answers

FOLLOWING ARE MCQs RELATED TO BILLS OF EXCHANGE with Answers

1)  Bill receivable account is a :

(A)  Machinery account

(B) Personal A/C

(C)  Real A/C

(D)  None of these

Answer & Explaination

Option C
  

2)  At the time of endorsement of a bill, the drawer credits:

(A)  Bill payable

(B)  Drawee A/C

(C) Drawer A/C

(D)  Bill Receivable A/C

Answer

Option D

3)  A Bills of exchange contains:

(A)  A promise to pay

(B)  An order to pay

(C)  A request to pay

(D)  All of the above

Answer

Option B

4)  A bill, which is drawn and accepted in same country:

(A)  Accommodation bill

(B) Trade Bill

(C)  Foreign bill

(D)  In land bill

Answer

Option D

5)  A bill of exchange is drawn by:

(A)  Debtor

(B)  Creditor

(C)  Holder

(D)  All of the above

Answer

Option C

6)  A person who draws bill of exchange is called:

(A)  Payee

(B)  Drawer

(C)  Drawee

(D) None of them

Answer

Option B

7) The drawer of the bill allows three additional days to the Drawee for payment, these are called:

(A)  Days of rebate

(B)  Conditional days

(C)  Additional days

(D)  Days of grace

Answer

Option D

8)  When a bill of exchange is signed by Drawee, the bill is said to be:

(A)  Renewed

(B)  Accepted

(C)  Retired

(D)  Endorsed

Answer

Option B

9)  When bill is accepted without any condition to the order of drawer, it is called:

(A)  Blank acceptance

(B)  Qualified acceptance

(C)  General acceptance

(D) Conditional acceptance

Answer

Option C

10)  When the bill is written it is known as:

(A)  Renewed

(B)  Accepted

(C)  Retired

(D)  Drawn

Answer

Option D

11)  If the holder of the bill sells it to bank before maturity date, it is called:

(A)  Retiring of bill

(B) Discounting of bill

(C)  Sale of a bill

(D) Endorsement of a bill

Answer

Option D

12) If the bill is transferred from one person to another person, it is called:

(A)  Discounting of bill

(B)  Transferring of a bill

(C)  Endorsement of a bill

(D)  Renewal of a bill

Answer

Option C

13)  A person who endorsed the bill is known as:

(A)  Endorsee

(B)  Payee

(C)  Endorser

(D)  Drawer

Answer

Option C

14)  If the bill is noted from notary public, it is called:

(A)  Accepting

(B)  Noting

(C)  Discounting

(D) None of them

Answer

Option B

15)  Retiring a bill under rebate means:

(A)  Making payment for the bill before the due date

(B) Making payment for the bill after the due date

(C)  Dishonoring of a bill

(D)  All of the above

Answer

Option A

 

 

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