Accounting · Bills of Exchange
Which of the following statements is correct regarding bills of exchange?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1In case of endorsement of a bill, the endorser debits the endorsee's account and credits the Bills Receivable account.✓
- 2An oral bill of exchange is legally valid.
- 3If a bill is endorsed by the drawer, it becomes invalid.
- 4A bank will draw a bill on a customer at the time of granting an overdraft.
Correct answer
In case of endorsement of a bill, the endorser debits the endorsee's account and credits the Bills Receivable account.
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