A. Genuine trade reasons
B. For mutual financial accommodation
C. To help augment money supply
D. All the three
Related Mcqs:
- 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
A. Discounting of the bill with the bank
B. Payment of the bill on due date
C. Remitting or receiving the amount
D. Sending the bill to bank for collection - A chart of accounts generally start with which of the following types of accounts?
A. Assets accounts
B. liability accounts
C. Cash accounts
D. Revenue accounts - Closing stock is generally valued at______________?
A. Cost Price
B. Market Price
C. Cost price or Market price whichever is higher
D. Cost price or Market price whichever is lower - Revenue is generally recognized as being earned at that point of time when?
A. sale is effected
B. cash is received
C. production is completed
D. debts are collected - Generally the term fund is used to mean the difference between?
A. Current assets and current liabilities
B. Profit and loss A/C and Balance sheet
C. Current assets and non-current liabilities
D. Current liabilities and non-current liabilities - Closing entries are generally passed:
A. At the time of opening new books of account
B. At the time of closing the accounts
C. During the course of accounting period any time
D. After certification of accounts - How many parties are generally found in a Bill of Exchange?
A. 4
B. 2
C. 3
D. 5 - Which of the following is generally not the party to a check?
A. Payee
B. Payer
C. Bank
D. Seller - A cash book that is used to record the small payments of cash is generally referred as_________?
A. Simple cash book
B. Two column cash book
C. Three column cash book
D. Petty cash book - Drawings by owner of business are generally recorded on which of the following side of a cash book?
A. Receipts
B. Payments
C. Incomes
D. Expenditures
