what kind of acceptance is known as when the bill is accepted without any condition

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Bills of Exchange MCQs with solved answers

MCQs on Bills of Exchange: Our subject-matter specialists have composed these Bill of Exchange MCQs based on CBSE syllabus and current practices.

CommerceCommerce MCQsMCQ On Bills Of Exchange

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MCQs on Bills of Exchange

The Bill of Exchange is a negotiable instrument which is a legally binding document containing an order to pay a certain sum of money to a person within a pre-determined time frame or on-demand by the bearer of the instrument.

A creditor issues Bill of Exchange to a debtor for payment of money owed by the debtor for the goods and services availed. A prominent feature of the Bill of Exchange is, it needs to be accepted by a debtor to be valid.

Given below are essential MCQs on the Bill of Exchange to analyze your understanding of the topic. The answers are also given for your reference.

Bill of Exchange MCQs

1. What is the Bill receivable account?

A) Personal Account

B) Machinery Account

C) Real Account D) Nominal Account

Answer: A

2. A bill of exchange includes.

A) An order to pay B) A request to pay C) A promise to pay D) All the above

Answer: A

3. Which bill is drawn and accepted in the same country?

A) Trade Bill B) Foreign Bill C) Inland Bill

D) Accommodation Bill

Answer: C

4. Who draws a bill of exchange?

A) Creditor B) Debtor C) Drawer

D) None of the above

Answer: C

5. What is the person known as who draws a bill of exchange

A) Drawer B) Payee C) Drawee

D) None of the above

Answer: A

6. What are the three additional days known as that a drawer gives to the drawee for payment

A) Conditional days B) Additional days C) Days of grace D) Days of rebate

Answer: C

7. When the drawee signs the bill, it is considered as

A) Accepted B) Retired C) Renewed D) Endorsed

Answer: A

8. What kind of acceptance is known as when the bill is accepted without any condition?

A) Qualified acceptance

B) Conditional acceptance

C) Blank acceptance

D) General acceptance

Answer: D

9. When the bill is noted from the notary public, it is known as?

A) Noting B) Discounting C) Accepting

D) None of the above

Answer: A

10. What is retiring a bill under rebate means?

A) Making a payment of the bill before the due date

B) Dishonoring of a bill

C) Making a payment of the bill after the due date

D) All of the above

Answer: A

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MCQS on Bills of Exchange

MCQs on " Bills of Exchange": Find the multiple choice questions on " Bills of Exchange", frequently asked for all competitive examinations.

Bills of Exchange

MCQs on " Bills of Exchange": Find the multiple choice questions on " Bills of Exchange", frequently asked for all competitive examinations.

A bill of exchange (BOE) is an important topic covered in Accountancy. It is a notice or a written order. The BOE binds one entity to pay a fixed amount to another entity on demand or at a set date. It is mostly used in international trade. Bills of exchange, like cheques and promissory notes, can be drawn by people or banks and are usually transferable through endorsements. There can be up to 3 parties involved: the drawee, the payee, and the drawer. Most importantly, the bills of exchange assist buyers and sellers in handling the risks of exchange rate changes and legal jurisdictional variations.

The basic MCQs on this topic are listed below to help you assess your subject knowledge. Additionally, for your convenience, the responses are also provided.

1. What is the person writing out the order to pay called?

Drawee Acceptor Payee Drawer

Answer: option D.2. Who does the bank seek payment from if a discounted bill is dishonoured?

Endorser Drawee Drawer Payee

Answer: option C. What is the acceptance termed as where a bill is accepted without any particular condition?

Blank acceptance

Qualified acceptance

General acceptance

Unconditional acceptance.

Answer: option C.In the same country, which bill can be written and accepted?

Inland bill Foreign bill Accommodation bill Trade bill

Answer: option A. Choose from the given options, which are least likely to be the feature of bills of exchange.

A written document

Specifies the date of payment

Accepted by the drawer

An unconditional order.

Answer: option C.Choose the correct option concerning the number of parties involved in discounting bills.

Unlimited Two Four Three

Answer: option B. The activity of signing on the book of instruments for the aim of transfer by the drawer is called.

Cheque Bill Acceptance of bill Endorsement.

Answer: option D Choose the correct option for measuring discounted charges.

Discounted bill amount × Rate × Unexpired Period

Discounted bill amount + Rate × Unexpired Period

Discounted bill amount × Rate ÷ Unexpired Period

Discounted bill amount × Rate + Unexpired Period

Answer: option B Who incurs the interest when a bill is renewed?

Drawer Acceptor Endorser Drawee

Answer: option B. What is the bill’s due date if the due date falls on a holiday?

Following day The same day After two days Preceding day.

Answer: option D Which account in the drawer’s books should be debited if a drawee is deemed insolvent?

Solvency account Bad debt account Deficiency account

None of the preceding

Answer: option B Ram draws a bill on Shyam for Rs.5000. Ram endorsed it to Rohit. Rohit endorsed it to Amit. The bill’s payee is:

Ram Rohit Shyam Amit

Answer: option D. What are the 3 extra days that a drawer grants to the drawee for payment called?

Additional days Days of rebate Conditional days Days of grace.

Answer: option D. If a bill is retired, the discount or rebate is a source of income for the?

Drawer Payee Holder Acceptor

Answer: option D Choose the correct option concerning what an order to pay includes.

Accounts receivable Demand draft Bills of exchange Overdraft

Answer: option C. What criteria are used to determine if a bill of exchange is accepted?

When the BOE is paid

When issued by the drawer

When the bill of exchange is renewed

When drawee signs the bill

Answer: option D17. Which of these bills is not permitted 3 days of grace?

Bill before the due date

Bill, at the time of the due date

Bill, after the due date

Bill at sight

Answer: option D. When the notary public notes the bill, it is called.

Accepting Noting Discounting

None of the above options

Answer: option B The ____ pays the noting charges, although they are recordable from the ___.

Drawer, Drawee Drawee, Drawee Drawee, Drawer Drawer, Drawer.

Answer: option C Which book of accounts shows the debit balance?

Bills Receivable Book

Journal Ledger Creditor Book.

Answer: option A. In the case of a dishonoured bill, the bearer of the bill takes the assistance of an official called?

Inspector Drawer Manager Notary public.

Answer: option D.

स्रोत : unacademy.com

MCQ Questions on Bills of Exchange

MCQ Questions on Bills of Exchange: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Bills of Exchange and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in ... Read more

MCQ Questions on Bills of Exchange

August 19, 2020 by Kishen

MCQ Questions on Bills of Exchange: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Bills of Exchange and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.

MCQ Questions on Bills of Exchange

1. What is the Bill receivable account?

(a) Personal Account

(b) Machinery Account

(c) Real Account (d) Nominal Account

Answer2. A bill of exchange includes.

(a) An order to pay

(b) A request to pay

(c) A promise to pay

(d) All the above

Answer3. Which bill is drawn and accepted in the same country?

(a) Trade Bill (b) Foreign Bill (c) Inland Bill

(d) Accommodation Bill

Answer4. Who draws a bill of exchange?

(a) Creditor (b) Debtor (c) Holder

(d) None of the above

Answer5. What is the person known as who draws a bill of exchange

(a) Drawer (b) Payee (c) Drawee

(d) None of the above

Answer6. What are the three additional days known as that a drawer gives to the drawee for payment

(a) Conditional days

(b) Additional days (c) Days of grace (d) Days of rebate

Answer7. When the drawee signs the bill, it is considered as

(a) Accepted (b) Retired (c) Renewed (d) Endorsed

Answer8. What kind of acceptance is known as when the bill is accepted without any condition?

(a) Qualified acceptance

(b) Conditional acceptance

(c) Blank acceptance

(d) General acceptance

Answer9. When the bill is noted from the notary public, it is known as?

(a) Noting (b) Discounting (c) Accepting

(d) None of the above

Answer10. What is retiring a bill under rebate means?

(a) Making a payment of the bill before the due date

(b) Dishonoring of a bill

(c) Making a payment of the bill after the due date

(d) All of the above

Answer

स्रोत : www.ncertbooks.guru