Bill Exchange MCQs

By: Prof. Dr. Fazal Rehman | Last updated: May 21, 2025

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1. : A person who draws a bill of exchange is called:





2. : A bill of exchange is drawn by:





3. : A person on whom the bill is drawn is called:





4. : A person who accepts the bill of exchange is called:





5. : A bill of exchange contains:





6. : The minimum number of parties in a bill exchange are:





7. : Bill receivable book is also called:





8. : Bill receivable book represents:





9. : When a bill is drawn, the drawer credits:





10. : When a bill of exchange is accepted by the drawee, he debits the:





11. : Bill receivable account denotes:





12. : Bill payable account denotes:





13. : When a bill is met at old age, the drawer credits:





14. : When a bill is discharged by the acceptor, he debits:





15. : When a drawer draws a bill, the drawer debits:





16. : When a person sells his bill to the bank before maturity, it is called:





17. : The method of payment by bill of exchange depends on:





18. : Charges which are deducted by the bank at the time of discounting:





19. : Drawer is a person who:





20. : The legal tenor of a bill is:





21. : When the drawer discounts a bill, he debits:





22. : Bill of exchange is sent for collection to the bank:





23. : When the acceptor of a bill becomes insolvent, the bill accepted by him is measured as:





24. : When the acceptor of a bill refuses to meet the bill at maturity, it is treated as:





25. : The duration of time in which a bill payable is known as:





26. : The process through which a bill is exchanged for the settlement of debts is called:





27. : When a bill is endorsed by the drawer, he debits:





28. : The person to whom a bill is endorsed is called:





29. : When the drawer sends a bill for collection to the bank, the drawer debits:





30. : When the bank informs the drawer for the collection of the bill, the drawer debits:





31. : When a bill is accepted by drawee without any condition, it is called:





32. : When a bill is accepted by the drawer with some conditions, it is called:





33. : When the drawee requests to draw another bill against interest to the drawer after the first bill, it is called:





34. : Interest on the regeneration of a bill is an expense of:





35. : Interest on the renewal of a bill is income for:





36. : If the bill is dishonoured, the noting charges are borne by:





37. : A bill of exchange is signed by:





38. : The number of grace days is:





39. : The rebate in case of retirement of a bill is revenue for:





40. : If the recognised bill is dishonoured, the drawer will debit:





41. : If the reduced bill is dishonored the drawer will debit:





42. : Retirement of bill means:





43. : When noting charges are paid by bank at dishonor of bill the drawer will debit:





44. : A bill of exchange from the viewpoint of its drawer is called:





45. : A bill of exchange from the viewpoint of debtor is called:





46. : A person who promises to pay under promissory note is called:





47. : When liabilities of any person exceed his asset, he is called:





48. : When a bill of exchange is drawn, accepted and permitted without any consideration it is called:





49. : A promissory note contains:





50. : When bill is drawn in one country and accepted and payable in another country it is called:





51. : When the bill is drawn in one country and accepted and payable in the same country it is called:





52. : When the bill is dishonored, the container of bill goes for its noting to a person called:





53. : How many parties involved in promissory note:





54. : Promissory note must not be:





55. : Promissory note is made by:





56. : When the bill is discounted by the drawer, acceptor will debit:





57. : What entry will be passed by acceptor in case of endorsement of bill?





58. : When accommodation bill is dishonored drawer will credit:





59. : In accommodation of bill, if the drawee becomes insolvent, the drawer will credit balance of his account to:





60. : Accommodation bill is drawn for:





61. : In accommodation bill, who draws the bill?





62. : When a bill is drawn for accommodation of drawer and drawee, it is called:





63. : When a bill is drawn for accommodation represents the drawer it is called:





64. : Bill of exchange is governed by the Crossable Instrument Act:





65. : Noting charges are paid as a result of:





66. : A bill of exchange is:





67. : A promissory note is:





68. : A person who receives the amount on maturity of bill is called:





69. : A bill of exchange is accepted by:





70. : Selling a bill to the bank before its due date at a discount is called bill discounting:





71. : If the bill is dishonored by acceptor, drawer will debit:





72. : The person who goes to Notary Public for noting of bill on dishonor is called:





73. : Noting charges are ultimately borne by:





74. : A bill of exchange which is drawn without consideration is called:





75. : When drawee becomes insolvent, bad debts accounts is prepared by:





76. : When drawee becomes insolvent, deficiency account is prepared by:





77. : A person who endorsed the bill is called:





78. : If bills are sent for collection, drawer will debit:





79. : A person who notes the dishonored bill is called:





80. : When a bill is discounted by endorsee, drawee will pass:





81. : When a bill is endorsed to endorsee, drawee will pass:





82. : What does retiring a bill under rebate mean?





83. : How many parties are involved in case of discounting of bill?





84. : How many parties are involved in case of endorsement of bill?





 

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