300+ TOP MCQs on Bills of Exchange and Answers

MCQs on Bills of Exchange: Below are the list of Commerce MCQs and Answers as per the new syllabus. Bills of Exchange Objective Questions.

MCQs 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)

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