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Accountancy for Class XII - Accounting for Partnership: Basic Concepts

Class XII
Accountancy
Accounting for Partnership: Basic Concepts
11 questions
HARD

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1. What is the primary document that outlines the terms of a partnership?

Partnership Deed · Memorandum of Association · Articles of Association · Shareholder Agreement

2. Which of the following is NOT a characteristic of a partnership?

Limited liability · Mutual agency · Profit sharing · Voluntary association

3. In a partnership, the profit-sharing ratio can be altered by which of the following?

Unanimous consent of partners · Majority vote · Decision of the managing partner · Legal mandate

4. What is the default profit-sharing ratio in the absence of a specified ratio in the partnership deed?

Equal ratio · Capital contribution ratio · Time devoted ratio · Market value ratio

5. Which of the following is true regarding the liability of partners in a partnership?

Partners have unlimited liability · Partners have limited liability · Partners' liability is restricted to their capital contribution · Partners are not liable for business debts