Quick Answer: What Is Fictitious Asset?

What is the difference between fictitious assets and intangible assets?

21 February 2011 INTANGIBLE ASSET is an asset that is not physical in nature.

Examples are things like copyrights, patents, intellectual property, or goodwill.

FICTITIOUS ASSET is debit balance includes on balance sheets as assets that do not conform to the definition of an asset..

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.

What is the opposite of fictitious?

fictitious. Antonyms: real, true, historical, genuine, authentic, veritable.

Why is goodwill considered an intangible asset but not a fictitious asset?

Goodwill is considered as an intangible asset of the firm. … It just has a capability to help the business in earning more and more profits. On the contrary, fictitious assets are neither tangible nor intangible assets. They are the expenses or losses which are still to be charged (debited) from the profit.

Is Goodwill 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.

Which one of the following is not a fictitious asset?

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.

Which type of account is generally fictitious account?

Nominal AccountsNominal Accounts Since this account does not represent any tangible asset, it is called nominal or fictitious account.

Is Prepaid expenses 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.

What is the meaning of fictitious?

1 : of, relating to, or characteristic of fiction : imaginary fictitious events described in his novel. 2a : conventionally or hypothetically assumed or accepted a fictitious concept. b of a name : false, assumed. 3 : not genuinely felt.

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.

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.

How is goodwill calculated?

Goodwill formula calculates the value of the goodwill by subtracting the fair value of net identifiable assets of the company to be purchased from the total purchase price; fair value of net identifiable assets is calculated by deducting the fair value of the net liabilities from the sum of the fair value of all the …

Is not fictitious asset?

These assets include a debit balance of profit and loss A/c and the expenditure not yet written off such as advertising expenses etc. Among the given options Discount on issues of shares and debentures is not the example of fictitious assets.

Why is prepaid rent an asset?

The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. These are both asset accounts and do not increase or decrease a company’s balance sheet. Recall that prepaid expenses are considered an asset because they provide future economic benefits to the company.

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.

Is advertisement suspense a fictitious asset?

This capitalized Advertisement Expenditure is called Deferred Advertisement Expenditure or ‘Advertisement Suspense Account’ . … Such Deferred Revenue Expenditure is shown in the Balance Sheet as an asset till it is written off to Profit & Loss A/c. Reason for this is very simple.

Are fictitious assets?

Fictitious asset is not a real asset but deferred expenses that are shown in assets in the balance sheet. … 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.