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. Perpetual succession
B. Separate legal entity
C. Unlimited liability of members
D. Common seal (now optional)
Answer: Option C
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 a feature of the Indian Financial Management System?
A. Use of appropriation accounts
B. Zero-based budgeting is prohibited
C. Absence of audit
D. Decentralized budgeting only
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Correct Answer: Option A

Explanation:
Indian government accounting uses appropriation accounts to compare actual spending against grants approved by Parliament.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Voucher Number' should be:
A. Date-based
B. Same for all
C. Sequential and unique
D. Random
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Correct Answer: Option C

Explanation:
Vouchers should be numbered serially for control and easy reference.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Operating Profit' is calculated as:
A. EBITDA - Depreciation
B. Gross profit - Operating expenses
C. Net profit + Interest
D. Sales - Cost of goods sold
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Correct Answer: Option B

Explanation:
Operating profit = Gross profit - Operating expenses (administrative, selling).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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