Preliminary expenses is an example of
A)fixed assets.
B)current assets.
C)fictitious assets.
D)current liabilities.

Name: Preliminary expenses is an example of A)fixed assets. B)current assets. C)fictitious assets. D)current liabilities.
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Question

Quizplus · Accepted Answer

Preliminary expenses are considered fictitious assets because they do not have a physical form 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