Preliminary expenses are the best example for ........

Auditing Concept of Auditing

Preliminary expenses are the best example for _________.

fictitious asset.

intangible asset.

wasting asset

floating asset

- Fictitious Asset:

- ?? Typically includes expenses not directly tied to physical assets, like preliminary expenses.

- These are not real assets but are shown on the balance sheet.

- Intangible Asset:

- Relates to assets without physical substance, such as patents or trademarks.

- Has potential future benefits.

- Wasting Asset:

- Refers to assets that depreciate in value over time.

- Includes natural resources like mines.

- Floating Asset:

- Also known as current assets.

- Consists of cash or items convertible into cash within a year.

Correct Answer: Option 1 - Fictitious Asset

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