Preliminary expenses is an example of
A)Fixed asset
B)Current asset
C)Investment
D)Fictitious asset

Name: Preliminary expenses is an example of A)Fixed asset B)Current asset C)Investment D)Fictitious asset
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Question

Quizplus · Accepted Answer

Preliminary expenses are considered fictitious assets because they do not have a physical existence or realizable value but are expenses incurred during the formation of a company, which are written off over a period of time against the company's earnings.

Preliminary Expenses Is an Example of