14 June 2010
Fictitious assets are those assets created by an accounting entry that has no tangible existence or realizable value but represents actual cash expenditure.
14 June 2010
Asset created by an accounting entry (and included under assets in the balance sheet) that has no tangible existence or realizable value but represents actual cash expenditure. The purpose of creating a fictitious asset is to account for expenses (such as those incurred in starting a business) that cannot be placed under any normal account heading. Fictitious assets are written off as soon as possible against the firm's earnings.
For example > Discount on issue of shares, Preliminary Expenses.
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