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Which of the following statements is not true?
- a)Noting charges are expenses of drawer
- b)The bill of exchange must contain an order to pay
- c)The drawer and payee can be same person
- d)A bill of exchange can be endorsed (i.e. passed on to another person)
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements is not true?a)Noting charges are exp...
Noting Charges are Expenses of Drawer
Explanation:
A bill of exchange is a written document in which the drawer (the person who issues the bill) orders the drawee (the person who is ordered to pay) to pay a certain amount of money to the payee (the person who is supposed to receive the money). The bill of exchange must contain an order to pay, and it can be endorsed (i.e. passed on to another person). However, the drawer and the payee cannot be the same person.
Noting charges are not expenses of the drawer. Noting charges are the fees charged for noting dishonored bills by notaries public. These charges are levied on the holder of the bill, not on the drawer. Therefore, statement A is not true.
To summarize:
- A bill of exchange contains an order to pay.
- The drawer, drawee, and payee are different parties.
- A bill of exchange can be endorsed.
- Noting charges are not expenses of the drawer.
Explanation:
A bill of exchange is a written document in which the drawer (the person who issues the bill) orders the drawee (the person who is ordered to pay) to pay a certain amount of money to the payee (the person who is supposed to receive the money). The bill of exchange must contain an order to pay, and it can be endorsed (i.e. passed on to another person). However, the drawer and the payee cannot be the same person.
Noting charges are not expenses of the drawer. Noting charges are the fees charged for noting dishonored bills by notaries public. These charges are levied on the holder of the bill, not on the drawer. Therefore, statement A is not true.
To summarize:
- A bill of exchange contains an order to pay.
- The drawer, drawee, and payee are different parties.
- A bill of exchange can be endorsed.
- Noting charges are not expenses of the drawer.
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Which of the following statements is not true?a)Noting charges are exp...
Noting Charges are expenses of the Drawee, and not the Drawer.
Hence, option A.
Hence, option A.
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Which of the following statements is not true?a)Noting charges are expenses of drawerb)The bill of exchange must contain an order to payc)The drawer and payee can be same persond)A bill of exchange can be endorsed (i.e. passed on to another person)Correct answer is option 'A'. Can you explain this answer?
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Which of the following statements is not true?a)Noting charges are expenses of drawerb)The bill of exchange must contain an order to payc)The drawer and payee can be same persond)A bill of exchange can be endorsed (i.e. passed on to another person)Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is not true?a)Noting charges are expenses of drawerb)The bill of exchange must contain an order to payc)The drawer and payee can be same persond)A bill of exchange can be endorsed (i.e. passed on to another person)Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is not true?a)Noting charges are expenses of drawerb)The bill of exchange must contain an order to payc)The drawer and payee can be same persond)A bill of exchange can be endorsed (i.e. passed on to another person)Correct answer is option 'A'. Can you explain this answer?.
Which of the following statements is not true?a)Noting charges are expenses of drawerb)The bill of exchange must contain an order to payc)The drawer and payee can be same persond)A bill of exchange can be endorsed (i.e. passed on to another person)Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is not true?a)Noting charges are expenses of drawerb)The bill of exchange must contain an order to payc)The drawer and payee can be same persond)A bill of exchange can be endorsed (i.e. passed on to another person)Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is not true?a)Noting charges are expenses of drawerb)The bill of exchange must contain an order to payc)The drawer and payee can be same persond)A bill of exchange can be endorsed (i.e. passed on to another person)Correct answer is option 'A'. Can you explain this answer?.
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