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State Whether the Following Statement is True Or False. - Book Keeping and Accountancy

MCQ
True or False

State whether the following statement is True or False.

A bill of exchange can be endorsed only once.

Options

  • True

  • False

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Solution

False

Explanation:

Bills of exchange can be endorsed multiple times because it is an unconditional order to pay a certain sum of money to the holder of the bill.

Thus, the statement given above is incorrect because it can be endorsed many times. 
Concept: Accounting Treatment - Endorsement of the Bill, Honour/ Dishonour and Also Insolvency of Acceptor
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