Q & A (New Pattern) - Bills of exchange For Departmental Exam Account & Finance

1)What is a Bills Receivable account?

A)Personal Account

B)Machinery Account

C)Real Account

D)Nominal Account

2)From the following information, find out who can draw the bill if Mr. A sold goods to B:

A)A will draw a bill on B

B)B will draw on A

C)Third party will draw a bill on A or B

D)None of the above

3)Who draws a Bill of Exchange?

A)Creditor

B)Debtor

C)Holder

D)None of the above

4)The person who draws a Bill of Exchange is known as

A)Drawer

B)Payee

C)Drawee

D)None of the above

5)What does ‘retiring a bill under rebate’ mean?

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

B)Dishonouring of a bill

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

D)All of the above

6)A bill of Exchange has __Parties

A)One

B)Two

C)Three

D)Four

7)Noting Charges are paid to the Notary by the

A)Drawer

B)Bank

C)Endorsee

D)Either of the above three parties

8)The payment of a Promissory Note made by its

A)Maker

B)Payee

C)Drawer

D)Bank

9)The purpose of accommodation bill is

A)To finance actual purchase or sale of goods

B)To facilitate trade transmission

C)When both parties are in need of funds

D)None of the above

10) Under which circumstances drawer and payee is same person:

A)When drawer discounted the bill with banker

B)When drawer endorse the bill to third party

C)When drawer held the bill till maturity

D)When drawee rejects to accept the bill

Answer key Bills of exchange

1C

2A

3C

4A

5A

6C

7D

8A

9C

10C