Question # 1

A bank reconciliation statement is prepared by:

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banker

Accountant of the business

Statutory auditors

Rigistar

The Legal tenor of a bill is

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Sixty Days

One Month

Eighty Days

Ninety Days

The transaction for which non separate book is maintained are recorded in:

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Journal proper

Bills receivable book

Bills payable book

Cash book

A Journal is generally kept on:

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A columnar basis

A row basis

A single line basis

Vertical basis

The person to whom bill is transferred will become

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Endorser

Creditor

Debtor

Endorsee

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

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

Narration is always written:

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Above each entry

Below each entry

Between of each entry

None of these

When is a drawee is declared insolvent which account is to be debited in the books of drawer

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Deficiency a/c

Bad Debts a/c

Solvency a/c

None of these

The time after which the bill is to be paid

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Grace Days

Tenor

Due Date

Extra Days

When a drawee honours his acceptance, he will credit

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Capital Account

Drawer Account

Bill Payable Account

Cash 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

When an acceptor refuses to pay the amount of bill to the holder on its maturity date it is called

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Honoured Bill

Retired Bill

Dishonoured Bill

Endorsed Bill

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

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Two

Three

Four

None of these

Real accounts are related to:

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Assets

Expenses, losses and incomes

Customers, creditors

Incomes

When a bill is transferred by the drawer to his creditor, for settlement of his debts, it is called

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Retirement of Bill

Endorsement of a Bill

Discounting of a Bill

Settlement of a Bill

When a Bill is dishonoured, the holder of the bill goes to an official called

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Inspector

Notary Public

Drawer

Manager

A bill of exchange is a method of payment on

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Cash Basis

Credit Basis

Reserve Basis

Accommodation Basis

When a drawer discounts a bill, he debits

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Bank Account

Interest Account

Drawee Account

Bill Receivable Account

When a bill is discharged the acceptor debits:

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Creditors account

Cash account

Bill payable account

Bill receivable account

A bill of exchange is a / an

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Promise

Unconditional Order

Request

Conditional Order

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

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