Which of the following is not a characteristic of a company? MCQ with Answer and Explanation

Question
Which of the following is not a characteristic of a company?
A. Separate legal entity
B. Perpetual succession
C. Common seal (now optional)
D. Unlimited liability of members
Answer: Option D
Solution (By JKSSB Mock Tests)
Company members have limited liability.
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 considered an investing activity in a cash flow statement?
A. Purchase of machinery
B. Payment of dividend
C. Cash received from customers
D. Issue of shares
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Correct Answer: Option A

Explanation:
Investing activities involve the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
An item of 'Outstanding Income' is shown in Balance Sheet as:
A. Liability
B. Asset
C. Expense
D. Income
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Correct Answer: Option B

Explanation:
Outstanding income is receivable, hence a current asset.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Social Accounting primarily measures:
A. Dividends to shareholders
B. Tax paid to government
C. Impact of an entity on society and environment
D. Only financial performance
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Correct Answer: Option C

Explanation:
It quantifies social costs and benefits generated by an enterprise.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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