- Is Deferred tax fictitious asset?
- Is prepaid expense a fictitious asset?
- Is advertisement suspense a fictitious asset?
- What is a floating asset?
- What are fictitious liabilities?
- What is the treatment of fictitious assets?
- What are the fictitious assets?
- Is patent a fictitious asset?
- Can you offset deferred tax assets and liabilities?
- What is meant by fictitious?
- Why is goodwill considered an intangible asset but not a fictitious asset?
- Is Goodwill a fictitious assets?
- What are fictitious assets give one example?
Is Deferred tax fictitious asset?
A deferred tax asset, however, has no physical form to take.
It’s not a pile of money, nor can it be turned into one.
It’s essentially a “credit” — an accounting device that lets you lower your future reported expenses.
As such, it is an intangible asset..
Is prepaid expense a fictitious asset?
Normally this asset would be a “prepaid expense.” These are tangible assets, with definite and realizable value, so they are not fictitious. As the prepaid goods or services are delivered, the asset disappears and the expense is recognized.
Is advertisement suspense a fictitious asset?
Fictitious Assets such as o Debit balance of Profit and Loss Account o Advertisement Suspense Account etc. are not transferred to Realisation Account.
What is a floating asset?
A highly liquid, current asset. Working assets are taken in and distributed over relatively brief periods of time. … A working asset is also called a floating asset or a circulating asset.
What are fictitious liabilities?
CBDT has said that such fictitious liabilities can be in the nature of loans, creditors, advances received, share capital, payables etc. that are disclosed in the audited balance sheet but are fictitious in nature.
What is the treatment of fictitious assets?
Point to be Noted while treating fictitious assets: – Fictitious assets have no physical existence or you can say these are intangible assets. These type of assets are just expenses which are treated as assets. They have no realizable value. They are amortized or written off in one then more profitable financial years.
What are the fictitious assets?
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. … Fictitious assets are written off as soon as possible against the firm’s earnings.
Is patent a fictitious asset?
Fictitious assets are the deffered revenue expenditure as well as intangible assets i.e advertisement expenses, discount on issue of shares and debentures. But point to be remembered that Goodwill, Patents, Trade Marks are not the part of Fictitious assets. These assets are simply a intangible assets.
Can you offset deferred tax assets and liabilities?
When an entity is required to offset deferred tax assets and deferred tax liabilities in its statement of financial position because it meets the conditions in FRS 102.29. 24A, the entity is not necessarily entitled to offset the related deferred tax income and deferred tax expense.
What is meant by fictitious?
created, taken, or assumed for the sake of concealment; not genuine; false: fictitious names. of, relating to, or consisting of fiction; imaginatively produced or set forth; created by the imagination: a fictitious hero.
Why is goodwill considered an intangible asset but not a fictitious asset?
Goodwill is considered as an intangible asset of the firm. It means it can not be seen or touched like other assets of the firm. It does not have any physical existence. … On the contrary, fictitious assets are neither tangible nor intangible assets.
Is Goodwill a fictitious assets?
Goodwill is not a fictitious asset . it is an intangible asset as it cannot be seen or touched. fictitious assets have no market value but Goodwill has a market value as it can be sold.
What are fictitious assets give one example?
Expenses or losses that are not written off during the accounting period of occurrence because they give long-term benefit over a period of time are categorized as fictitious assets. … Marketing expenses, bank NPAs, discounts on the issue of shares, and debenture losses are few examples of fictitious assets.