Bills of Exchange and Promissory Notes MCQ

1. Bills payable account is a nominal account.

2. Promise to pay is included in a bill of exchange.

3. Days of rebate are added to the due date to arrive at the maturity date.

4. Discount at the time of retirement of a bill is a gain for the drawee.

5. Foreign bill is drawn in the country and payable outside the country.

6. Promissory note is different from bill of exchange because the amount is paid by the maker in case of former and by the acceptor in the later.

7. A has drawn a bill on B. B accepts the same and endorses the bill to C.

8. A bill given to a creditor is called bills payable.