ICSI CSEET (Company Secretary Executive Entrance Test) Practice Quiz

Question 1

Meera, a sole trader, pays her personal medical bill of ₹12,000 from the business bank account. Under the business entity concept, how should this payment be recorded?

Accepted Answer

As drawings, reducing owner’s equity

Question 2

A workshop continues to use its plant and prepares the balance sheet on the footing that operations will continue, rather than at forced-sale values. Which fundamental assumption supports that footing?

Accepted Answer

Going concern

Question 3

Inventory cost ₹50,000. A reliable estimate of net realisable value at the reporting date is ₹42,000, and no sale has occurred. Applying prudence with the lower-of-cost-and-net-realisable-value rule, inventory is carried at:

Accepted Answer

₹42,000

Question 4

A firm decides that routine annual professional fees are expensed when the service is received. It also revises a laptop’s useful life from five years to four years because usage evidence has changed. Which statement is correct?

Accepted Answer

The fee treatment is a policy; the life revision is a change in estimate

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