Practice Transferable (5.3.6) - Bills of Exchange - ICSE 11 Accountancy
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Transferable

Practice - Transferable

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Practice Questions

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Question 1 Easy

What does transferability of a bill of exchange mean?

💡 Hint: Think about how the bill can change hands.

Question 2 Easy

Who is the endorser?

💡 Hint: Who writes their name on the back?

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the primary benefit of the transferability of bills of exchange?

A) Increases complexity in trading
B) Provides flexibility and liquidity
C) Eliminates payment risks

💡 Hint: Think about how businesses use bills of exchange.

Question 2

True or False: Endorsement is the process by which a bill's rights can only be transferred once.

True
False

💡 Hint: Consider how many times a bill might change hands.

2 more questions available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

If a company endorses a bill of exchange to a supplier who then endorses it to another, what implications does this have for the final endorsee if the drawee fails to honor it?

💡 Hint: Consider the chain of responsibility in endorsements.

Challenge 2 Hard

Discuss a scenario where a business might choose not to endorse a bill of exchange. What factors might play into this decision?

💡 Hint: Think about how trust and creditworthiness affect business decisions.

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