MCQs on "Partnership": Find the multiple choice questions on "Partnership", frequently asked for all competitive examinations.
Here are a few MCQs on Partnership for your better understanding of the topic.
Q:1.
What is the responsibility of partners in a partnership organisation?
- A. Unlimited
- B. No Liability
- C. Limited to the capital of business
- D. Limited
Q:2.
When does the direct debit to partner’s capital a/c entry made in accounts?
- A. Interest on Drawings is charged.
- B. Investment is made
- C. Capital is withdrawn
- D. Drawings are made
Q:3.
What percentage of the partners’ capital is charged interest on without a partnership deed?
- A. 6 % Per annum
- B. 12 % Per annum
- C. 14 % Per annum
- D. No interest is levied
Q:4.
In the absence of a partnership agreement, how will the earnings be split among the partners?
- A. Equal
- B. Depending on the capital invested.
- C. Unequal
- D. Depending on the work experience.
Q:5.
Which of the partnership firm’s accounts cannot record rent paid to partners?
- A. Depreciation Account
- B. Expenses Account
- C. Profit & Loss Account
- D. Salary Account
Q:6.
What is a partner in profits only?
- A. A person who gives some money to a business but doesn’t play a big role in running it.
- B. A person who has a stake in the partnership and is involved in the day-to-day running.
- C. An 18-year-old partner
- D. A partner who gets into an agreement to share only the profits of the partnership firm and not the losses.
Q:7.
To which loan account should the balance be transferred if a partner lends or advances money?
- A. Partner’s Liability Account
- B. Partners’ Capital Account
- C. Balance Sheet Assets Side
- D. Balance Sheet Liability Side
Q:8.
In what kind of relationship does one partner have known risk, and the other has limited obligation?
- A. Particular Partnership
- B. Limited Liability Partnership
- C. General Partnership
- D. Partnership At will provide no reason
Q:9.
In a partnership firm, what are some of the following features?
- A. They are sharing profits and losses in a fixed ratio.
- B. Two or more persons are carrying common business under an agreement.
- C. Business is carried by all or any of them acting as an agent.
- D. All of these.
Q:10.
What form of relationship does not have a long-term partnership agreement?
- A. Limited Liability Partnership
- B. Particular Partnership
- C. Partnership At will
- D. General Partnership
