Question # 1

A bill of exchange is drawn by

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Debtor

Creditor

Endorser

Endorsee

When a drawee honours his acceptance, he will credit

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Capital Account

Drawer Account

Bill Payable Account

Cash Account

A bill of exchange is a method of payment on

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Cash Basis

Credit Basis

Reserve Basis

Accommodation Basis

A bill of exchange is a / an

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Promise

Unconditional Order

Request

Conditional Order

At the time of drawing a bill the drawer credits:

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Debtors account

Creditors account

bill receivable account

Suppliers account

Narration is always written:

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Above each entry

Below each entry

Between of each entry

None of these

When a drawer discounts a bill, he debits

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Bank Account

Interest Account

Drawee Account

Bill Receivable Account

All those expenses which are incurred to convert raw-materials into finished goods are called:

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Direct expenses

Indirect expenses

Administrative expenses

Sales expenses

The act of withdrawing a bill of exchange from circulation when it had been paid before the due date

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Renewal of a Bill

Discounting of a Bill

Endorsement of a Bill

Retiring of a Bill

Subsidiary books are called the book of:

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Original entry

Secondary entry

Temporary entry

Basic entry

A bill from the point of view of a debtor is called

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Bill Acceptable

Bill Receivable

Bill Payable

None of these

How many parties are involved in case of Discounting of a bill ?

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Two

Three

Four

None of these

A bill which is both drawn and payable within the geographical boundaries of a country

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Foreign Bill

Local Bill

Municipal Bill

Inland Bill

Real accounts are related to:

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Assets

Expenses, losses and incomes

Customers, creditors

Incomes

Accommodation bills are drawn accepted and endorsed

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Without any Consideration

for some Consideration

for Quarter Consideration

none of the above

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Principles of accounting Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers

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