MCQ on Indian Railways Administration and Finance An introduction(Bills of Exchange)-PC-11
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 is 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
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