A bill of exchange can not be
1. Endorsed
2.Accepted
3.Refused
4. Crossed
A bill of exchange is an?
1. A promise
2. Unconditional order
3. A request
4.A order
A bill of exchange renewed generally at the request of
1.Drawee
2.Bank
3. Drawer
4.None
A person who writes out the order to pay is called?
1.Drawer
2.Acceptor
3.Payee
4.Drawee
According to Negotiable Instrument Act, 1881, which of the following refers to “an instrument in writing (not being a bank note or a currency note) containing unconditional undertaking, signed by the maker to pay on demand or at a fixed or determinable future time a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument”?
1.Promissory note
2. Bearer debentures
3.Cheque
4.Bill of exchange
An alternative term used for accumulated depreciation expenses?
1.Provision for depreciation
2.Cumulative depreciation
3.Targeted depreciation
4.Depletion
Bill of Exchange has parties :
1.6
2.2
3.3
4.4
Charity of goods is-
1.Expenses
2. Loss
3.Profit
4.None of these.
Depreciation charged under diminishing method
1. Increase every year
2. Decrease every year
3.Increase in one year and decrease another year
4. Same every year
Depreciation helps in determining
1.Accurate level of profit
2. Increases the value of asset
3.Revenue generation
4. Increase the burden of tax
Direct Expenses are entered in:
1. Trading Account
2. profit & Loss Account
3.Balance sheet
4.None of these
Discounting Charges =
1.Amount of Bill Discounted × Rate × Unexpired Period
2.Amount of Bill Discounted × Rate / Unexpired Period
3.Amount of Bill Discounted × Rate + Unexpired Period
4.Amount of Bill Discounted + Rate × Unexpired Period
Drawing is deducted from:
1.Sales
2. Purchase
3.Returns outward
4. Capital
Due date of a bill of exchange drawn on 30th January, 2011 for one month will be :
1.5 Mar
2.3 Mar
3.29 Feb
4.4 Mar
Encashing the bill before the date of its maturity is called :
1.Dishonour of Bill
2.Retirement of Bill
3.Discounting of Bill
4. Endorsement of Bill
Fee paid in cash to Notary Public is charged by
1.Holder of bill of exchange
2.Drawee
3. Drawer
4.None
Goodwill is a-
1.Fixed Asset
2.Current Asset
3.Fictitious Asset
4.None of these
How many parties are involved in case of discounting of bill?
1. Two
2. Three
3. Four
4. Unlimited
If a person fails to pay his debt, such amount is considered as-
1. Bad debts
2.Bad debts recovered
3.Provision for Bad debt
4.None of these.
If the drawer is in need of money and cannot wait till due date and receive the money form bank is called?
1.Endorsement of bill
2. Discounting of bill
3.Retirement of bill
4.Dishonor of bill
If the due date is public holiday what will be the due date of the bill
1. Preceding day
2. Following day
3. The same day
4.After two days
In case if endorsement of bill the endorser debits?
1. Creditor account
2. Cash account
3.Bill receivable account
4. Bill payable account
In case of term bill extra three days are given to acceptor are called?
1. Days of bill payable
2.Days if bill receivable
3.Days of grace
4.Days of tenor
It is a period of time after which a bill becomes payable?
1. Grace days
2.Maturity
3.Usance
4.Tenor
Kamal draws a bill on Sahil for Rs.3000. Kamal endorsed it to Rohan. Rohan endorsed it to Rakesh. The payee of the bill will be
1. Kamal
2.Rakesh
3.Sahil
4. Rohan
Noting charges are paid by the ___ but these are recordable from the ____
1.Drawer, Drawer
2.Drawer, Drawee
3. Drawee, Drawer
4.Drawee, Drawee
On dishonor of a discounted bill who does the bank look for payment?
1.Drawer
2. Payee
3.Endorser
4.None
On dishonor of a discounted bill whom does the bank look for payment
1.Drawer
2.Drawee
3.Endorser
4.Payee
On whom the trade bill drawn
1.Seller
2. Creditor
3.Debtor
4.Owner
Outstanding Expenses are related to-
1.Current year
2.Next year
3. Last year
4. None of these.
Person to whom the bill is endorsed called ____
1.Endorsement
2. Endorser
3.Endorsee
4. None
Prepaid expenses are shown in-
1.Liability side
2. Asset side
3.Assets or Liability side
4. None of these.
Profit and loss Account discloses:
1.Gross profit
2.Gross profit or Gross loss
3.Gross profit or Gross loss
4. None of these
The act for signing by the drawer on the book of the instruments for the purpose of transfer
1. Acceptance of bill
2.Cheque
3.Endorsement
4.Bill
The object of non – trading concerns-
1.Social service
2.Profit earning
3. Both of these
4.None of the above.
The party which is entitled to receive the payment of bill of exchange is known as :
1.Drawer
2. Payee
3.Drawee
4.None of these
The party which is ordered to pay the amount of bill of exchange is called :
1.Drawee
2. Payee
3. Drawer
4. None of these
The party who is entitled to receive the cash of a bill receivable is called
1.Drawer
2.Drawee
3.Capitalist
4. Bank
The promissory note should be signed by
1. Payee
2. Drawee
3.Drawer
4.Promiser
The purpose of accommodation bill is :
1.To finance actual purchase
2.When both parties are in need of funds
3.To facilitate trade transmission
4. None
Trading Account discloses-
1. Gross profit
2.Net profit
3. Net loss
4. Gross profit or Gross loss
Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset
1.Straight line method
2.Reducing balance method
3.Number of units produced method
4.Machine hours method
What are the parties to a bill of exchange
1. Drawee, Drawer, Payee
2. Drawee, Drawer, Debtor
3.Payer, Drawee, Drawer
4.Drawee, Drawer, Creditor
What is the rate of charging depreciation under diminishing method?
1.12% p.a.
2.15% p.a.
3.10% p.a.
4. Not fixed
When a drawer discounts the bill, he gets?
1.More than face value
2.Less than face value
3.Equal to face value
4. None of above
When an acceptor refuses to pay the amount of bill to the holder of bill on its maturity is called?
1.Honored bill
2.Dishonored bill
3.Retired bill
4.Endorsed bill
Which balance is shown by a B/R Book
1. Credit
2.None
3. Both
4.Debit
Which bill is not allowed 3 days of grace
1.Bill at the time of due date
2. Bill at sight
3. Bill after due date
4.Bill before due date
Which of the following is not a type of reserve
1.Provision for bad debt
2.General reserve
3.Workmen compensation fund
4. Retained earnings
While calculating the due date of the bill, how many days are added to the period of the bill :
1.4 days
2.3 days
3. 5 days
4.Neither of these