Accounting - Bills of Exchange

When the drawee signs the bill, it is considered as

• Accepted

• Endorsed

• Retired

• Renewed

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

• Drawer

• Payee

• Drawee

• None of the above

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

• Discounting

• Noting

• Accepting

• None of the above

What is retiring a bill under rebate means?

• Making a payment of the bill after the due date

• Making a payment of the bill before the due date

• Dishonoring of a bill

• All of the above

When a drawer discounts the bill, he gets?

• Less than face value

• More than face value

• Equal to face value

• None of above

In case of term bill extra three days are given to acceptor are called?

• Days of bill payable

• Days if bill receivable

• Days of grace

• Days of tenor

If the drawer is in need of money and cannot wait till due date and receive the money form bank is called?

• Endorsement of bill

• Discounting of bill

• Retirement of bill

• Dishonor of bill

Which of the following is not true?

• A bill of exchange must be accepted

• Drawee is maker of a bill

• There is no difference in appearance between trade and accommodation bill

• Accommodation bill is for an imaginary transaction

Interest on renewal of a bill is an expense to the?

• Payee

• Holder

• Acceptor

• Drawer

In case of retirement of bill, the rebate or discount is a revenue for the?

• Payee

• Holder

• Acceptor

• Drawer