Tag: negotiable instruments 1 - cheque

Quizzes (3) Questions (8)

Questions Related to negotiable instruments 1 - cheque

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

The person to whom the amount of cheque is payable or paid is called payee.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maker of a cheque is called the 'drawer', and the person directed to pay is the 'drawee'. The person named in the instrument, to whom or to whose order the money is, by the instrument directed, to be paid, is called the 'payee'.

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

When a cheque is returned dishonoured, it is recorded in ______________.

  1. Cash column on the credit side

  2. Cash column on the debit side

  3. Bank column on the credit side

  4. Bank column on the debit side.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The dishonored cheque is shown in the debit column of the bank statement.

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

Unpresented cheques are also referred as ___________.

  1. uncollected cheques

  2. uncredited cheques

  3. outstanding cheques

  4. bounced cheques
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unpresented cheques are cheques that have been issued by a business but have not yet been presented to the bank for payment. They are also known as outstanding cheques.

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

Some of the transaction that is dependent on bank statement are __________.

  1. collection charges

  2. dividends received

  3. rent received

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Bank statements often include transactions like collection charges, dividends received, and rent received that the account holder may not have recorded in their books until they see the statement.

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

A document which is used to deposit the amount in the bank account is __________.

  1. Withdrawal slip

  2. Pay in slip

  3. Cheque leaf

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Pay in slip as the name suggests is a slip that is filled by the customer to deposit money in the bank account either by cash or by cheque. The things that need to be filled in a pay in slip are the account details in which the money is to be deposited, amount to be deposited by cash or by cheque, and the signature of the depositor.

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

The pay in slip provided by the bank to the account holder is divided into _____ parts.

  1. 2

  2. 3

  3. 4

  4. 5
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A pay in slip provided by the bank to the account holder is divided into 2 parts. One is the counterfoil being the smaller part of the slip which acts as a documentary evidence of the money deposited in the bank. Whereas the other part being the longer one is kept with the bank having all the details of the customer and is kept for record with the banks.

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

Left hand side of the pay in slip is known as ___________.

  1. Acknowledgment

  2. Folio number

  3. Counterfoil

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Left hand side of the pay in slip is known as the counterfoil. A pay in slip provided by the bank to the account holder is divided into 2 parts. One is the counterfoil being the smaller part of the slip which acts as a documentary evidence of the money deposited in the bank

Multiple choice business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

The contents of the pay in slip in the main part and the counterfoil are completely different.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The pay-in slip and its counterfoil are designed to be mirrors of each other, containing the same information (date, account name, amount, etc.) so that the bank can provide a receipt to the depositor.