Which of the following is (are) an example(s) of fictitious assets? (i) Debit balance of Profit and Loss account (ii) Goodwill
Only (i)
The correct answer is option 3. The debit balance of the Profit and Loss account is a fictitious asset because it represents accumulated losses, whereas goodwill is an intangible asset, not a fictitious one. Fictitious assets are those that have no physical existence, and are typically recorded in the accounts until they are written off over time.
Important Questions from Balance sheet statement
___________ is a record of assets and liabilities of any firm.
A businessman can find out what his business owns and what it owes from _______.
Which of the following options is an INCORRECT pair considering a firm's balance sheet?
A trial balance shows
(i) Credit balances
(ii) Debit balances
Which of the following pairs is NOT correctly matched in the context of account balances shown in the Trial Balance?
