| 1 |
A bill of exchange is a method of payment on |
- A. Cash Basis
- B. Credit Basis
- C. Reserve Basis
- D. Accommodation Basis
|
| 2 |
When a bill is transferred by the drawer to his creditor, for settlement of his debts, it is called |
- A. Retirement of Bill
- B. Endorsement of a Bill
- C. Discounting of a Bill
- D. Settlement of a Bill
|
| 3 |
The Legal tenor of a bill is |
- A. Sixty Days
- B. One Month
- C. Eighty Days
- D. Ninety Days
|
| 4 |
When is a drawee is declared insolvent which account is to be debited in the books of drawer |
- A. Deficiency a/c
- B. Bad Debts a/c
- C. Solvency a/c
- D. None of these
|
| 5 |
A bill which is both drawn and payable within the geographical boundaries of a country |
- A. Foreign Bill
- B. Local Bill
- C. Municipal Bill
- D. Inland Bill
|
| 6 |
Accommodation bills are drawn accepted and endorsed |
- A. Without any Consideration
- B. for some Consideration
- C. for Quarter Consideration
- D. none of the above
|
| 7 |
At the time of drawing a bill the drawer credits: |
- A. Debtors account
- B. Creditors account
- C. bill receivable account
- D. Suppliers account
|
| 8 |
All those expenses which are incurred to convert raw-materials into finished goods are called: |
- A. Direct expenses
- B. Indirect expenses
- C. Administrative expenses
- D. Sales expenses
|
| 9 |
When a drawer discounts a bill, he debits |
- A. Bank Account
- B. Interest Account
- C. Drawee Account
- D. Bill Receivable Account
|
| 10 |
When bank column of a cash book shows a credit balance, it means: |
- A. Cash balance
- B. Bank balance
- C. Under draft
- D. Over draft
|