Quick Answer: What Is The Meaning Of Fictitious Assets?

What is the difference between factitious and fictitious?

As adjectives the difference between fictitious and factitious.

is that fictitious is not real; invented; contrived while factitious is created by humans; artificial..

Which of the following is not fictitious asset?

They are recorded as assets in financial statements only to be written off later. Promotional expenses, Preliminary expenses, Discount allowed on issue of shares and Loss incurred on issue of debentures are examples of fictitious assets. Prepaid rent is not a fictitious asset.

What are fictitious assets class 11?

Expenses or losses that are not written off during the accounting period of occurrence because they give long-term benefit over a period of time are categorized as fictitious assets. … Marketing expenses, bank NPAs, discounts on the issue of shares, and debenture losses are few examples of fictitious assets.

What is included in fictitious asset?

The examples of Fictitious Assets are as follows:The Net Loss of the company.The Promotional (Marketing) expenses of the company.The Underwriting commission.The Preliminary Expenses of the Company.The Discount allowed on the issue of shares.The loss incurred on the issue of debentures.

Is goodwill is a fictitious asset?

It cannot be touched and felt and therefore, goodwill is an intangible asset. Fictitious assets on the other hand, are the expenses or losses which are still to be charged from the profit and therefore, cannot be classified as tangible or intangible.

What are the 3 types of assets?

Different Types of Assets and Liabilities?Assets. Mostly assets are classified based on 3 broad categories, namely – … Current assets or short-term assets. … Fixed assets or long-term assets. … Tangible assets. … Intangible assets. … Operating assets. … Non-operating assets. … Liability.More items…

What is a fictitious company?

What is a fictitious name? A fictitious name (also known as a“doing business as” or “dba”) is: Different from your personal name, if doing business as a sole proprietor. Different from your entity’s legal name, if you have incorporated or otherwise formed a separate legal business entity.

What is the difference between fictitious and fictional?

Put that all together, and try on this distinction: “Fictional” means coming from a made-up story or narrative, “fictitious” is a made-up thing or feeling. In most cases, “fictitious” is the better adjective than “fictional,” which takes a perfectly good noun and makes it into a weak adjective.

Are fictitious assets?

Fictitious assets are the assets which has no tangible existence, but are represented as actual cash expenditure. … In other words, fictitious means fake or not real, these are not assets at all but they show in financial statements.

What is difference between fixed assets and current assets?

That fixed assets are longer-term assets which are non-liquid, meaning they aren’t able to be transferred into cash quickly (usually within one year) That current assets are shorter-term assets or are already cash.

What is the meaning of fictitious?

adjective. created, taken, or assumed for the sake of concealment; not genuine; false: fictitious names. of, relating to, or consisting of fiction; imaginatively produced or set forth; created by the imagination: a fictitious hero.

What is the treatment of fictitious assets?

Point to be Noted while treating fictitious assets: – Fictitious assets have no physical existence or you can say these are intangible assets. These type of assets are just expenses which are treated as assets. They have no realizable value. They are amortized or written off in one then more profitable financial year.

What are fictitious liabilities?

In a fresh set of clarifications issued, CBDT has said that such fictitious liabilities can be in the nature of loans, creditors, advances received, share capital, payables etc. that are disclosed in the audited balance sheet but are fictitious in nature.

Is prepaid expense a fictitious asset?

Fictitious Assets are those assets which are not represented by anything concrete or tangible. There are no tangible properties behind such assets, preliminary expenses is one of the example. Other examples are like Goodwill, Prepaid Expenses etc.

Is Deferred tax fictitious asset?

A deferred tax asset, however, has no physical form to take. It’s not a pile of money, nor can it be turned into one. It’s essentially a “credit” — an accounting device that lets you lower your future reported expenses. As such, it is an intangible asset.