Practice Endorser (5.2.4) - Bills of Exchange - ICSE 11 Accountancy
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Endorser

Practice - Endorser

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Learning

Practice Questions

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Question 1 Easy

What is an endorser in a bill of exchange?

💡 Hint: Think about who initially holds the rights before transferring them.

Question 2 Easy

Who becomes the endorsee after a bill is endorsed?

💡 Hint: Consider who receives the rights from the endorser.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the primary role of an endorser?

To pay the drawee
To transfer payment rights
To negotiate the bill

💡 Hint: Think about what action they take concerning the bill.

Question 2

True or False: An endorser is completely free from responsibility if the drawee defaults.

True
False

💡 Hint: Consider the obligations an endorser has.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A corporation issues a bill of exchange but has financial issues. If it goes bankrupt and the endorsee seeks payment, what liabilities do the endorser face?

💡 Hint: Consider the endorser's obligation when dealing with credit risks.

Challenge 2 Hard

Propose strategies an endorser can take to minimize risks when transferring a bill of exchange.

💡 Hint: Think about how due diligence may affect the endorsement decision.

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