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- Name – Quiz 47 – Bills of Exchange – (Answers)
- Topic – Bills of Exchange
- Answers with Explanation
Q1. Bills payable account is a ____ account.
Ans. Bills payable account is a personal account.
Q2. The party which makes the order is known as the _____.
Ans. The party which makes the order is known as the drawer.
Q3. The party which accepts the order is known as the _____.
Ans. The party which accepts the order is known as the acceptor.
Q4. The party to whom the amount is to be paid is known as the _____.
Ans. The party to whom the amount is to be paid is known as the payee.
Q5. The drawee and payee can be the same person.
Ans. The following statement is True.
Q6. ____ number of grace days are allowed after the due date. (Traditionally)
Ans. 3 grace days are allowed after the due date.
Q7. When the drawer of the bill transfers the bill in favour of the creditor in order to clear his debts, it is known as _____.
Ans. When the drawer of the bill transfers the bill in favour of the creditor in order to clear his debts, it is known as an endorsement.
Q8. X draws a bill on Y. X endorsed the bill to Z. The payee of the bill is _____.
Ans. X draws a bill on Y. X endorsed the bill to Z. The payee of the bill is Z.
Q9. Foreign bill is drawn in the country and payable outside the country.
Ans. The following statement is True.
Q10. A promissory note can also be a banknote.
Ans. The following statement is False. A promissory note cannot be prepared as a bank note or currency note.
Q11. _____ means the instrument in which the time of payment is mentioned.
Ans. Bill after date means the instrument in which the time of payment is mentioned.
Q12. A _____ is always payable on demand.
Ans. A cheque is always payable on demand.
Q13. A bill of exchange contains a/an _____ order to pay.
Ans. A bill of exchange contains an unconditional order to pay.
Q14. Insolvency of a person means that he is able to pay his liabilities.
Ans. The following statement is False. Insolvency of a person means that he is unable to pay his liabilities.