Question

Fictitious assets are shown on the asset side of the balance sheet of a company under the heading ________.

• A. Fixed Asset
• B. Current Asset
• C. Miscellaneous Expenditure
• D. None of these

Answer 1

Answer: (C)

Miscellaneous Expenditure

Fictitious assets are those assets which are not real but whose benefits are derived by the company over a long period of time. Examples of fictitious assets are deferred revenue expenditure, preliminary expenses, etc.

These are shown on the asset side of the balance sheet under the head "Miscellaneous Expenditure".