CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Bills Of Exchange Quiz 3 - MCQExams.com

A confirmed letter of credit is one which 
  • Is availed by the importer's bank
  • Is guaranteed by a bank acceptable to the exporter
  • Is irrevocable
  • Is payable at sight
  • Has all the features
Payment of bill on its due date is known as ________________.
  • Honouring of bill
  • Dishonouring of bill
  • Renewal of bill
  • Discounting of bill
The person on whose favor a bill is endorsed is called as _______.
  • Endorser
  • Endorsee
  • Drawer
  • Drawee

Transfer of a negotiable instrument to another person by signing on it, is known as Endorsement.
  • True
  • False
A person who endorses the promissory note in favour of another is known as Endorser.
  • True
  • False
A bill of exchange is a negotiable Instrument.
  • True
  • False
A bill of exchange is drawn for all cash transaction.
  • True
  • False
Bill of exchange is drawn by ________.
  • creditor
  • debtor
  • customer
  • any of the above 
How many parties are usually found in the case of a bill of exchange?
  • $$2$$
  • $$3$$
  • $$4$$
  • $$5$$
The term bill of exchange is defined in section _________ of the Negotiable Instruments Act.
  • $$3$$
  • $$5$$
  • $$4$$
  • $$10$$
The person who draws the cheque and signs on it is the ______.
  • drawer
  • drawee
  • payee
  • all of the above
Bill of exchange is an _________.
  • unconditional order to pay
  • unconditional undertaking to pay
  • conditional order to pay
  • conditional undertaking to pay
________ is not an essential requirement of a valid bill of exchange.
  • Acceptance
  • Consideration
  • Specific sum payable
  • Writing
Inland bills are those bills which are ________ or ________ in India.
  • Drawn, Payable
  • Accepted, Stamped
  • Stamped, Registered
  • None of the Above
Drawee of a bill of exchange is generally a ________.
  • creditor
  • debtor
  • both of the above
  • none of the above
Payee of a bill of exchange is a person __________.
  • to whom the bill of exchange is payable
  • who has accepted the bill of exchange
  • a person who draw the bill
  • to whom the bill is endorsed
How many days grace period is given for payment of a bill of exchange?
  • $$3$$
  • $$7$$
  • $$4$$
  • $$5$$
Drawee means a person who ___________.
  • makes the order
  • accepts it
  • payee
  • all of the above
Bill payable is drawn by __________.
  • creditor
  • supplier
  • debtor
  • none of the above
Drawer of a bill of exchange is generally a _________.
  • creditor
  • debtor
  • both of the above
  • none of the above
Drawer means a person who ___________.
  • makes the order
  • accepts it
  • payee
  • all of the above
U/s $$12$$ of the negotiable instruments act, all the instruments which are not inland instruments are_______.
  • not valid in India
  • local instruments
  • foreign instruments
  • none of the above
X a resident of Japan draw a bill of exchange of $$Rs. 5000$$ upon Y payable in Mumbai. This is a ___________.
  • Inland bill
  • Inchoate bill
  • Foreign bill
  • Accommodation bill
When a bill endorsed is dishonoured, ________ a/c is credited by the drawee.
  • bills payable A/c
  • drawer
  • bank
  • bill dishonored A/c
Documents of title
Which of these is an odd one so for document of title is concerned.
  • Bill of lading
  • Money order
  • Dock warrant
  • Railway receipt
A foreign bill is generally drawn in __________.
  • duplicate
  • triplicate
  • single copy
  • quadruplicate
R draws a bill of exchange on S for $$Rs. 8,000$$ for $$4$$ months. He got it discounted with a Bank at $$12$$% p.a. The net proceeds to be received from bank will be _______.
  • $$Rs. 7900$$
  • $$Rs. 7680$$
  • $$Rs. 8000$$
  • $$Rs. 7650$$
X draws a bill of exchange of $$Rs. 5,000$$ on B for $$4$$ months on $$15th\ February$$. The due date of the bill is ________.
  • $$19th\ June$$
  • $$18th\ June$$
  • $$17th\ June$$
  • $$15th\ June$$
Bill drawn and accepted for genuine trade transaction is called _________.
  • Trade Bill
  • Accommodation Bill
  • Genuine Bill
  • Commercial Bill
A draws a bill of exchange of $$Rs. 2500$$ on B for $$4$$ months on $$2nd$$ February. The due date of the bill of exchange will be ___________.
  • $$2nd\ July$$
  • $$6th\ June$$
  • $$5th\ June$$
  • $$3rd\ June$$
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers