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

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Which of the following is not a feature of a company?

A. Perpetual succession

B. Unlimited liability

C. Common seal

D. Separate legal entity

Answer: Option B

Solution (By JKSSB Mock Tests)

Company has limited liability, not unlimited.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Safeguards' against threats to independence may be:

A. Only internal

B. Created by the profession, legislation, or within the client's organisation

C. Only regulatory

D. None

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Correct Answer: Option B

Explanation:
Safeguards are measures that eliminate or reduce threats to an acceptable level.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

When preparing a BRS starting with an overdraft as per the Pass Book, checks deposited but not yet cleared should be:

A. Divided

B. Added

C. Ignored

D. Deducted

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Correct Answer: Option B

Explanation:
Deposited checks lower the Cash Book overdraft. To make the Pass Book overdraft match the lower Cash Book overdraft, the amount must be added (reducing the negative balance).

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The working capital requirement of a business is ₹80,000; current ratio is 2:1. Current assets will be:

A. ₹1,20,000

B. ₹40,000

C. ₹1,60,000

D. ₹80,000

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Correct Answer: Option C

Explanation:
Working capital = CA - CL = 80,000; CA/CL = 2 => CA = 2CL. Then 2CL - CL = 80,000 => CL = 80,000; CA = 1,60,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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