Question

Assets appearing in the book but having no value are known as ___________.

• A. Wasting Assets
• B. Intangible Assets
• C. Current Assets
• D. Fictitious Assets

Answer 1

The correct option is D Fictitious Assets

The word fictitious mean "fake' or "not true". Fictitious assets are not actually assets but are shown as assets in the balance sheet for time being. In fact, these are expenditure which could not be written off during a particular year. These assets actually does not have any realizable value.

These are amortized over a period of time. For example:

a) Preliminary Expenses

b) Loss on issue of debenture

These are shown in the balance sheet under the heading "Miscellaneous Expenditure" as part of asset.