Question : Assertion (A): The partners are the agents as well as principals of the firm. Reason (R): Partnership is a business relationship among two or more persons to share profits and losses of the business carried on by all or any of them acting for all.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is false
Option 4: Assertion (A) is false but Reason (R) is true
Correct Answer: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Solution : The partners are the agents as well as principals of the firm and a Partnership is a business relationship among two or more persons to share profits and losses of the business carried on by all or any of them acting for all. Hence, the correct option is 1.
Question : Assertion (A): Partnership Deed is a legal document signed by all the partners. Reason (R): Any type of charitable institution running as a not-for-profit organization will not be
Question : Assertion (A): Weighted average profit method is considered better than the simple average profit method because it assigns more weightage to the profits of the latest year which is more
Question : Assertion (A): Salary and commission are payable to the working partners for their efforts. Reason (R): No partner shall be paid such remuneration as salary, commission, etc. if the
Question :
Assertion (A): NPO do not maintain any capital
Assertion (A): Income and Expenditure Account
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