Accounting · Bills of Exchange
Which of the following statements is incorrect regarding accommodation bills (often historically related to Hundis)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1These bills are evidence of debt because the drawer is the debtor.✓
- 2In case of dishonor, the holder cannot file a suit against the party accommodated.
- 3These bills are also colloquially called 'kites' or 'windmills'.
- 4These bills are drawn and accepted without any genuine trade consideration.
Correct answer
These bills are evidence of debt because the drawer is the debtor.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Bills of Exchange MCQs →Want more practice questions on Bills of Exchange?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Bills of Exchange