Bill Of Exchange CBSE Questions & Answers

Bill Of Exchange

This is Accountancy Class 11 Bill of Exchange CBSE Questions & Answers. There are 14 questions in this test with each question having around four answer choices.

Questions & Answers

1
Which is true
  • A
    Noting charges are borne by drawee
    Correct
  • B
    Noting charges are borne by payee
  • C
    Noting charges are borne by drawer
  • D
    Noting charges are borne by bank
2
Discounting a bill of exchange means
  • A
    Taking the amount from bank against the bill at the time of bill due date
  • B
    Taking the amount from bank against the bill before bill due date
    Correct
  • C
    Taking the amount from bank against the bill before bill due date
  • D
    Taking the amount from bank against the bill after bill due date
3
Which requires the fixation of stamps
  • A
    None of these
  • B
    Promissory note
    Correct
  • C
    Bill of exchange
  • D
    Both
4
When the discounted bill is dishonored from whom the banker will collect the bill amount
  • A
    Drawer
    Correct
  • B
    Endorsee
  • C
    Drawee
  • D
    Promisee
5
If the bill is drawn in one country and payable in a foreign country it is a
  • A
    Foreign bill
    Correct
  • B
    Trade bill
  • C
    Debtors bill
  • D
    Accepted bill
6
If the bill is encashed from the bank before the date of maturity it is termed as
  • A
    Bill receivable
  • B
    Endorsement of bill
  • C
    Discount of bill
    Correct
  • D
    Dishonored of bill
7
If the second bill is drawn and accepted under fresh terms of agreement
  • A
    Acceptance of bill
  • B
    Renewal of bill
    Correct
  • C
    Dishonored bill
  • D
    Discounted bill
8
If the bill is paid on the date of maturity it is termed as
  • A
    Discounted bill
  • B
    Renewal of bill
  • C
    Dishonored bill
  • D
    Honouring of a bill
    Correct
9
The rebate on bill shows that
  • A
    None
  • B
    It has been paid before the date of maturity
    Correct
  • C
    It has been paid after the date of maturity
  • D
    It has been dishonored
10
Which of the following statement is true
  • A
    Noting charges are borne by the drawee in the event of dishonor of bill
    Correct
  • B
    Noting charges are borne by the drawer in the event of dishonor of bill
  • C
    A bill contains an unconditional promise to pay
  • D
    A bill is drawn by purchaser
11
From the following information find out who can draws a bill if Jitesh sold goods Jay
  • A
    Jay will draw a bill on third party
  • B
    Jitesh will draw a bill on Jay
    Correct
  • C
    Jitesh will draw a bill on third party
  • D
    Jay will draw a bill on Jitesh
12
When the bill are to be produced to notary public
  • A
    At the time of bill for collection
  • B
    At the time of dishonor of the bill
    Correct
  • C
    At the time of drawing of bill
  • D
    At the time of acceptance of bill
13
Which of the following statement is false
  • A
    B/R is an negotiable instrument
  • B
    There are two parties in respect of bill of exchange
    Correct
  • C
    It is an instrument in writing
  • D
    B/R must be accepted by drawee
14
Entry regarding payment of bill will be passed in the books of drawer if the bill is
  • A
    Retained and sent for collection to the banker
  • B
    Is discounted
  • C
    Is endorsed
  • D
    Retained by the drawer
    Correct