Bill of Exchange Test

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Bill of Exchange Test - 4

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Weekly Quiz Competition

Question 1
1 / -0

What are the parties to a bill of exchange

A
Drawee, Drawer, Creditor

B
Drawee, Drawer, Debtor

C
Drawee, Drawer, Payee

D
Payer, Drawee, Drawer

Solution

a bill of exchange has three parties namely the drawer, the drawee and the payee.
Question 2
1 / -0

Which bill is not allowed 3 days of grace

A
Bill at sight

B
Bill after due date

C
Bill before due date

D
Bill at the time of due date

Solution

days of grace are not allowed when the bill is payable "on demand" or "at sight".
Question 3
1 / -0

The purpose of accommodation bill is :

A
To facilitate trade transmission

B
To finance actual purchase

C
When both parties are in need of funds

D
None

Solution

this bill is drawn just for the mutual help of the parties to the bill of exchange.
Question 4
1 / -0

On dishonor of a discounted bill whom does the bank look for payment

A
Payee

B
Drawer

C
Drawer

D
Endorser

Solution

when a discounted bill gets dishonoured, the drawer becomes the creditor of the bank. hence the bank will recover the amount of dishonoured bill from the drawer.
Question 5
1 / -0

The act of signing by the drawer on the book of the instruments for the purpose of transfer

A
Cheque

B
Acceptance of bill

C
Endorsement

D
Bill

Solution

when the holder of a bill transfers the bill to a third party, the bill is said to have been endorsed or negotiated.
Question 6
1 / -0

Which balance is shown by a B/R Book

A
Debit

B
Credit

C
Both

D
None

Solution

B/R book is an asset for the company. hence it has the debit balance.
Question 7
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On whom the trade bill drawn

A
Debtor

B
Creditor

C
Seller

D
Owner

Solution

trade bill is a simple bill drawn for the purpose of trade transactions and it is drawn by the creditor(drawer) on debtor(drawee).
Question 8
1 / -0

The party who is entitled to receive the cash of a bill receivable is called

A
Drawee

B
Capitalist

C
Bank

D
Drawer

Solution

the drawer is the person who is entitle for the cash of bill receivable because he's the person who has granted the credit.
Question 9
1 / -0

Discounting Charges =

A
Amount of Bill Discounted ×Rate +Unexpired Period

B
Amount of Bill Discounted ×Rate × Unexpired Period

C
Amount of Bill Discounted ×Rate /Unexpired Period

D
Amount of Bill Discounted +Rate × Unexpired Period

Solution

the 'discounting charges' of a bill depends on the rate of interest and the period of maturity.
Question 10
1 / -0

According to Negotiable Instrument Act, 1881, which of the following refers to “an instrument in writing (not being a bank note or a currency note) containing unconditional undertaking, signed by the maker to pay on demand or at a fixed or determinable future time a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument”?

A
Cheque

B
Bill of exchange

C
Promissory note

D
Bearer debentures

Solution

As per section 4 of Negotiable Instrument Act, 1881, promissory note refers to “an instrument in writing (not being a bank note or a currency note) containing unconditional undertaking, signed by the maker to pay on demand or at a fixed or determinable future time a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument”.

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Re-Attempt Weekly Quiz Competition

Bill of Exchange Test - 4

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Bill of Exchange Test - 4

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SHARING IS CARING

Question 1

Drawee, Drawer, Creditor

Drawee, Drawer, Debtor

Drawee, Drawer, Payee

Payer, Drawee, Drawer

Solution

Question 2

Bill at sight

Bill after due date

Bill before due date

Bill at the time of due date

Solution

Question 3

To facilitate trade transmission

To finance actual purchase

When both parties are in need of funds

None

Solution

Question 4

Payee

Drawer

Drawer

Endorser

Solution

Question 5

Cheque

Acceptance of bill

Endorsement

Bill

Solution

Question 6

Debit

Credit

Both

None

Solution

Question 7

Debtor

Creditor

Seller

Owner

Solution

Question 8

Drawee

Capitalist

Bank

Drawer

Solution

Question 9

Amount of Bill Discounted ×Rate +Unexpired Period

Amount of Bill Discounted ×Rate × Unexpired Period

Amount of Bill Discounted ×Rate /Unexpired Period

Amount of Bill Discounted +Rate × Unexpired Period

Solution

Question 10

Cheque

Bill of exchange

Promissory note

Bearer debentures

Solution

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