Solve Study Textbooks Guides

Use app

Login

Question

Which of the following is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date?

A

Account payable

B

Bills of exchange

C

Promissory Note

D

Prepaid insurance policy

Medium

Open in App

Solution

Verified by Toppr

Correct option is C)

Promissory Note is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date

Was this answer helpful?

0

0

Similar questions

Which of the following can be considered as characteristic of negotiable instruments?

An indorsement made by an indorser by signing his name and also by writing the name of the indorse, is known as _________________.

Introduction of Negotiable Instruments
A negotiable instrument dated 3lst January, 2019, is made payable at one months after date. The instrument is at maturity on ______.

Classification of Negotiable Instruments
A promissory note or a bill of exchange payable after a fixed period, or after sight, or on specific day, or on the happening of an event which is certain to happen, is known as a/an -

A negotiable instrument dated 31st August, 2019, is made payable 3 months after date. The instrument is at maturity on ______.