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

Which of the following is not a feature of a partnership?
A. Separate legal entity
B. Agreement between partners
C. Sharing of profits
D. Unlimited liability
Answer: Option A
Solution (By JKSSB Mock Tests)
A partnership firm does not have a separate legal entity distinct from its partners (except limited liability partnerships).

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Practice More Accountancy and Book Keeping Questions

Question #1
Assertion (A): Under Ind AS 1, an entity must present a statement of changes in equity as part of its complete set of financial statements. Reason (R): This statement provides information about the changes in the carrying amount of each component of equity during the period. Choose the correct option.
A. A is true but R is false
B. Both A and R are true but R is NOT the correct explanation of A
C. Both A and R are true and R is the correct explanation of A
D. A is false but R is true

Correct Answer: Option C


Explanation:
Ind AS 1 requires the statement of changes in equity to show how each component of equity (share capital, reserves, retained earnings) changed during the period due to profits, dividends, and other comprehensive income. R correctly explains A.

Question #2
What is the golden rule for Personal Accounts?
A. Debit all expenses and losses, Credit all incomes and gains
B. Debit the owner, Credit the bank
C. Debit the receiver, Credit the giver
D. Debit what comes in, Credit what goes out

Correct Answer: Option C


Explanation:
Personal accounts represent individuals, firms, or companies. The rule dictates debiting the person receiving the benefit and crediting the provider.

Question #3
Depreciation is provided on:
A. Intangible assets only
B. Fixed assets (tangible)
C. Current assets
D. Fictitious assets

Correct Answer: Option B


Explanation:
Depreciation is charged on tangible fixed assets like machinery, buildings to reflect wear and tear.