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BILL OF EXCHANGE

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

The acceptor of bill of exchange is called:

a)

Drawee

b)

Drawer

c)

Payee

d)

Endorsee

2.

Bills Receivable Book is a part of

a)

Journal

b)

Ledger

c)

Trading Account

d)

Profit & Loss Account

3.

A bill of exchange is an?

a)

A promise

b)

Unconditional order

c)

A request

4.

A person who writes out the order to pay is called?

a)

Drawer

b)

Acceptor

c)

Payee

d)

Drawee

5.

How many parties are involved in case of discounting of bill?

a)

Two

b)

Three

c)

One

d)

Five

6.

In case if endorsement of bill the endorser debits?

a)

Creditor account

b)

Cash account

c)

Bill receivable account

d)

Bill payable account

7.

Which of the following is not true?

a)

There is no difference in appearance between trade and accommodation bill

b)

A bill of exchange must be accepted

c)

Drawee is maker of a bill

d)

Accommodation bill is for an imaginary transaction

8.

When an acceptor refuses to pay the amount of bill to the holder of bill on its maturity is called?

a)

Honored bill

b)

Dishonored bill

c)

Retired bill

d)

Endorsed bill

9.

The act of transferring the bill from one person to another is called:

a)

Discounting

b)

Acceptance

c)

Retirement

d)

Endorsement

10.

On 1.12.05 X draw a bill on Y "for 30 days after sight". The date of acceptance is 8.12.05. The due date of the bill will be:

a)

8.01.06

b)

10.01.06

c)

30.12.05