ACCOUNTANCY FOR CLASS 11 CHAPTER 8 BILLS OF EXCHANGE MCQS ALONG WITH ANSWERS

Free CBSE Accountancy Multiple Choice Questions for Class 11 along with answers Chapter 8: Bills of Exchange. Accountancy MCQs for Class 11 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. A bill of exchange can not be ______.

(a) Endorsed

(b) Accepted

(c) Refused

(d) Crossed

Answer: (c) Refused

2. Encashing the bill before the date of its maturity is called ______.

(a) Dishonour of Bill

(b) Retirement of Bill

(c) Discounting of Bill

(d) Endorsement of Bill

Answer: (c) Discounting of Bill

3. On dishonour of a discounted bill, who does the bank look for payment?

(a) Drawer

(b) Payee

(c) Endorser

(d) None

Answer: (a) Drawer

4. Due date of a bill of exchange drawn on 30th January 2011 for one month will be ______.

(a) 5th March 2011

(b) 3rd March 2011

(c) 29th February 2011

(d) 4th March 2011

Answer: (b) 3rd March 2011

5. The party which is ordered to pay the amount of bill of exchange is called ______.

(a) Drawee

(b) Payee

(c) Drawer

(d) None of the above

Answer: (a) Drawee

6. In the case of term bill, extra three days are given to the acceptor are called?

(a) Days of bill payable

(b) Days of bill receivable

(c) Days of grace

(d) Days of tenor

Answer: (c) Days of grace

7. When an acceptor refuses to pay the amount of bill to the holder of a bill on its maturity, is called?

(a) Honored bill

(b) Dishonored bill

(c) Retired bill

(d) Endorsed bill

Answer: (b) Dishonored bill

8. Which of the following is not true?

(a) There is no difference in appearance between trade and accommodation bill

(b) A bill of exchange must be accepted

(c) Drawee is the maker of a bill

(d) Accommodation bill is for an imaginary transaction

Answer: (c) Drawee is the maker of a bill

9. If the drawer is in need of money and cannot wait till the due date and receive the money from the bank, is called?

(a) Endorsement of bill

(b) Discounting of bill

(c) Retirement of bill

(d) Dishonor of bill

Answer: (b) Discounting of bill

10. The purpose of the accommodation bill is _______.

(a) To finance actual purchase

(b) When both parties are in need of funds

(c) To facilitate trade transmission

(d) None

Answer: (b) When both parties are in need of funds

11. Noting charges are paid by the ______, but these are recordable from the ______.

(a) Drawer, Drawer

(b) Drawer, Drawee

(c) Drawee, Drawer

(d) Drawee, Drawee

Answer: (c) Drawee, Drawer

12. Fee paid in cash to Notary Public is charged by ______.

(a) Holder of a bill of exchange

(b) Drawee

(c) Drawer

(d) None

Answer: (a) Holder of a bill of exchange

13. According to the Negotiable Instrument Act, 1881, which of the following refers to ‘an instrument in writing (not being a banknote 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’?

(a) Promissory note

(b) Bearer debentures

(c) Cheque

(d) Bill of exchange

Answer: (d) Bill of exchange

14. Discounting Charges = __________.

(a) Amount of Bill Discounted × Rate × Unexpired Period

(b) Amount of Bill Discounted × Rate / Unexpired Period

(c) Amount of Bill Discounted × Rate + Unexpired Period

(d) Amount of Bill Discounted + Rate × Unexpired Period

Answer: (d) Amount of Bill Discounted + Rate × Unexpired Period

15. The act for signing by the drawer on the book of the instruments for the purpose of the transfer is called ______.

(a) Acceptance of bill

(b) Cheque

(c) Endorsement

(d) Bill

Answer: (c) Endorsement

We trust that the offered Accountancy MCQs for Class 11 with responses Chapter 8: Bills of Exchange will help you. Assuming you have any questions with respect to CBSE Class 11 Accountancy, Bills of Exchange MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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