Where are the fictitious assets shown in the financial

statements?

A Debit side of Profit and loss statement Correct Answer Incorrect Answer

B Credit side of Profit and loss statement Correct Answer Incorrect Answer

C Asset side of balance sheet Correct Answer Incorrect Answer

D Liabilities side of balance sheet Correct Answer Incorrect Answer

E Not shown in financial statements Correct Answer Incorrect Answer

Solution

Fictitious assets are assets that do not have any tangible or physical existence but are shown on the asset side of the balance sheet. These assets are not real assets, and their value cannot be realized or recovered by the company. Fictitious assets are created by the accounting process, and they represent expenses or losses that have been incurred by the company but have not yet been written off as an expense.

Practice Next

Relevant for Exams:

IIFCL Grade A

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