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What is a fictitious asset?
3. What is a fictitious asset?
- An asset that is not physical in nature
- Assets that have no tangible existence
- Assets of a company that are expected to be sold or used
- An asset that can easily be converted into cash
Answer: B) Assets that have no tangible existence
Explanation:
Fictitious assets are the resources that have no unmistakable presence, yet are addressed as real money consumption. The fundamental objective is to make this record for costs that are not put in any record headings. All in all, made up implies phoney or not genuine, these are not resources by any means but rather they show in fiscal reports. Costs brought about in beginning a business, generosity, licenses, brand names, duplicate freedoms go under costs that can't be set any headings.