Which of the following is a feature of a company as per Companies Act? MCQ with Answer and Explanation

Question
Which of the following is a feature of a company as per Companies Act?
A. Perpetual succession
B. No separate legal entity
C. Cannot own property
D. Unlimited liability
Answer: Option A
Solution (By JKSSB Mock Tests)
A company has perpetual succession, separate legal entity, limited liability, and can own property.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is a type of audit risk?
A. Detection Risk
B. Control Risk
C. All of the above
D. Inherent Risk
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Correct Answer: Option C

Explanation:
Audit risk comprises Inherent Risk, Control Risk, and Detection Risk, which together determine the overall risk of an incorrect audit opinion.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
S1: A Receipt Voucher is prepared for cash receipts. S2: A Payment Voucher is prepared for cash payments. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S2 only
D. S1 only
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Correct Answer: Option B

Explanation:
In the voucher entry system, a Receipt Voucher is used to record all cash and bank receipts. A Payment Voucher is used to record all cash and bank payments. Both statements are correct.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Fund-based Accounting' is used by:
A. Sole traders
B. Companies
C. Partnership firms
D. Non-profit organizations and government entities
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Correct Answer: Option D

Explanation:
Fund-based accounting tracks resources for specific purposes, common in NPOs and government.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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