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Fictitious assets like preliminary expenses represent actual resources available to the business. - Commercial Applications

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Question

Fictitious assets like preliminary expenses represent actual resources available to the business.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:

Fictitious assets like preliminary expenses do not represent actual resources. They are only deferred revenue expenditures shown on the asset side until written off.

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Chapter 11: Nature and Terminology of Accounting - EXERCISES [Page 134]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 11 Nature and Terminology of Accounting
EXERCISES | Q I. 18. | Page 134
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