How many parties are generally found in a Bill of Exchange?
Correct answer: C. 3
- A. 4
- B. 2
- C. 3
- D. 5
Explanation
A bill of exchange generally involves three parties: the drawer who orders payment, the drawee who is directed to pay, and the payee who receives the amount. The drawer and payee may sometimes be the same person, but three roles are normally identified.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
Negotiable Instrument Act was enacted in_________?
Which of these is not an essential feature of a bill of exchange?
A foreign bill of exchange is generally drawn up in___________?
Which of the following is not a feature of a promissory note?
Under which of the following situations, is journal entry not passed in the books of the drawer?
The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to