Question

What are fictitious assets?

Answer 1

1. Fictitious assets are not real assets that have tangible value, but rather expenses or losses incurred but not yet written off.
2. These include preliminary expenses, advertising costs, and accumulated losses.
3. They are represented on the asset side of the balance sheet as non-current assets, even though they bring no future financial benefit.
4. Their goal is to be gradually written off against profits over time.