Question

Live stock is a fictitious asset. True Or false

Answer 1

im guessing it's true...not sure though do check with other ans.

Answer 2

Answer:

Fictituous assets are not assets actually, they are expenses and losses shown on asset side of the Balance sheet. Fictitious means “Fake”.

Fictious assets are those assets which couldn’t be written off during the present accounting period.

Examples-

1.preliminary expense

2.promotional expense of a business.

3.discount allowed in issue of shares

4.loss incurred on issue of debentures.

fictitious assets are not the assets but they are heavy losses which are shown in the balance sheet. They have realisable value. They r also known as Deffered revenue expenditure. e. g. advertisement exp, underwriter commission, preliminary exp, etc

but check it twice