What Is the Difference Between a Bill of Exchange and a Cheque

question 39

Multiple Choice

What is the difference between a bill of exchange and a cheque?

• A)A cheque is a bill of exchange in which the drawee is a financial institution.
• B)A bill of exchange is a form of cheque in which the drawee is a financial institution.
• C)A bill of exchange is negotiable whereas a cheque is not.
• D)A cheque is negotiable whereas a bill of exchange is not.

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Definitions:

Profit

The financial gain realized when the revenues generated from business activities exceed the expenses, taxes, and costs associated with maintaining the business.

Inter-Entity Transactions

Transactions that occur between two entities within the same parent company or corporate group, affecting the accounting practices and consolidation processes of the group.

NCI

An acronym for Non-Controlling Interest, representing minority ownership in an enterprise, where the owner does not have significant control over the company’s operations.

Dividend

A distribution of profits by a corporation to its shareholders, usually in the form of cash or additional shares.