Question

What are the types of asset ?

• A. Fixed asset
• B. Current asset
• C. Fictitious asset
• D. All of the above

Answer 1

Answer: (D)

All of the above

Assets are classified as Fixed Assets, Current Assets and Fictitious Assets.

Fixed assets are those which are durable in nature and the benefits of these assets are available to the business over the periods. This assets are not meant for resale. Like Plant & Machinery and Building etc.

Current Assets are those which are generated during the course of business and frequently undergo changes i.e. stocks, debtors, cash on hand and bank balances.

Fictitious Assets are those which are not represented by anything concrete or tangible. There are no tangible properties behind these assets. Like preliminary expenses, deferred revenue expenses.