New Upcoming Legal Jobs Free Workshop March 11 at 5 PM. Register here

    Question

    Preliminary expenses are the best example for

    _________.
    A fictitious asset. Correct Answer Incorrect Answer
    B intangible asset. Correct Answer Incorrect Answer
    C wasting asset. Correct Answer Incorrect Answer
    D floating asset. Correct Answer Incorrect Answer

    Solution

    Preliminary expenses are considered fictitious assets. Fictitious assets are costs incurred that do not have a physical existence but represent expenses incurred that need to be written off over a period. Preliminary expenses are incurred during the formation of a company.

    Practice Next