MCQ Questions on Bills of Exchange: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Bills of Exchange and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.
MCQ Questions on Bills of Exchange
1. What is the Bill receivable account?
(a) Personal Account
(b) Machinery Account
(c) Real Account
(d) Nominal Account
Answer
Answer: (c)
2. A bill of exchange includes.
(a) An order to pay
(b) A request to pay
(c) A promise to pay
(d) All the above
Answer
Answer: (a)
3. Which bill is drawn and accepted in the same country?
(a) Trade Bill
(b) Foreign Bill
(c) Inland Bill
(d) Accommodation Bill
Answer
Answer: (c)
4. Who draws a bill of exchange?
(a) Creditor
(b) Debtor
(c) Holder
(d) None of the above
Answer
Answer: (c)
5. What is the person known as who draws a bill of exchange
(a) Drawer
(b) Payee
(c) Drawee
(d) None of the above
Answer
Answer: (a)
6. What are the three additional days known as that a drawer gives to the drawee for payment
(a) Conditional days
(b) Additional days
(c) Days of grace
(d) Days of rebate
Answer
Answer: (c)
7. When the drawee signs the bill, it is considered as
(a) Accepted
(b) Retired
(c) Renewed
(d) Endorsed
Answer
Answer: (a)
8. What kind of acceptance is known as when the bill is accepted without any condition?
(a) Qualified acceptance
(b) Conditional acceptance
(c) Blank acceptance
(d) General acceptance
Answer
Answer: (d)
9. When the bill is noted from the notary public, it is known as?
(a) Noting
(b) Discounting
(c) Accepting
(d) None of the above
Answer
Answer: (a)
10. What is retiring a bill under rebate means?
(a) Making a payment of the bill before the due date
(b) Dishonoring of a bill
(c) Making a payment of the bill after the due date
(d) All of the above
Answer
Answer: (a)