Accounting - Study Mode
[#1151] Discounting of bill by the drawer is done with
Correct Answer
(C) Bank
Explanation
Solution: Discounting of bill by the drawer is done with Bank. An accepted draft or bill of exchange sold for early payment to a bank or credit institution at less than face value after the bank deducts fees and applicable interest charges.
[#1152] A bill of exchange when drawn requires
Correct Answer
(C) Acceptance
Explanation
Solution: A bill of exchange when drawn requires acceptance. By acceptance, the drawee engages himself to pay the amount from the bill of exchange to the person who will bear or hold it on the due term.
[#1153] A bill of exchange is called a ____ by one who is liable to pay it on the due date
Correct Answer
(C) Bill payable
Explanation
Solution: A bill of exchange is called a Bill payable by one who is liable to pay it on the due date. It is a written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum, either immediately (a sight bill) or on a fixed date (a term bill), for payment of goods and/or services received.
[#1154] ___ days of grace are allowed in case of time bills, for calculating date of maturity
Correct Answer
(C) 3
Explanation
Solution: 3 days of grace are allowed in case of time bills, for calculating date of maturity. Legal due date of a term/usance bill will be the last day of grace ( maturity date plus three days of grace is the legal due date).
[#1155] The application money payable on a share should not be less than the following percentage of the value of the share:
Correct Answer
(A) 5%