Accountancy MCQs
Topic Notes: Accountancy
General Description
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
1
For which party is the rebate considered revenue when a bill of exchange is retired before its due date?
Answer:
Acceptor
Retiring a bill means paying it before the maturity date. The holder usually allows a discount or rebate to the acceptor for early payment. Since the acceptor pays less than the face value of the bill, this rebate acts as a financial gain or revenue for the acceptor.
2
When a bill of exchange is retired before its due date, how is the rebate treated by the holder of the bill?
Answer:
Holder
Retiring a bill means paying it before the due date. The holder of the bill grants a rebate (a form of discount) to the acceptor for early payment. Consequently, this rebate is considered an expense or a loss for the holder, as they are receiving less than the full face value of the bill.