Note – Please take our quiz ‘Quiz 30 – Fictitious Assets – (Answers)‘ on this page before going through the below answers. Only the top 3% of our audience scored 10/10 in all of them.
- Name – Quiz 30 – Fictitious Assets – (Answers)
- Topic – Fictitious Assets
- Answers with Explanation
Q1. Prepaid expense is a fictitious asset.
Ans. The given statement is False. Fictitious assets are expenses & losses which for some reason are not written off during the accounting period of their incidence. A prepaid expense is not a fictitious asset.
Q2. Fictitious assets are intangible assets.
Ans. The given statement is False. Intangible assets are assets which cannot be seen or touched. However, fictitious assets are merely some expenses which are allowed to be shown in the balance sheet and written-off over time like other long-term assets.
Q3. Fictitious assets are _____ in multiple accounting years.
Ans. Fictitious assets do not have any physical form. They are written off (amortized) in multiple accounting years.
Q4. Fictitious assets are shown on the _____ side of a balance sheet.
Ans. They are shown on the asset side as they are treated just like any other asset.
Q5. Fictitious Assets are _____ for the business.
Ans. Fictitious assets are not real assets they are expenses/losses recorded as assets and their benefit will arise in future.
Q6. Which of the following is not an example of a fictitious asset?
Ans. Prepaid Expenses are not fictitious assets.
Q7. Which of the following is an example of a fictitious asset?
Ans. Preliminary expenses are incurred before the beginning of a business and amortized over time.
Q8. Fictitious assets are not recognized in cash.
Ans. The given statement is True. Fictitious assets are expected to be amortized over a period. They are not realized in cash.
Q9. Fictitious assets are known to have a physical existence.
Ans. The given statement is False. Fictitious assets cannot be seen therefore they do not have any physical form.
Q10. _____ is the meaning of ‘Fictitious’.
Ans. The meaning of the word “fictitious” is “not true” or “fake”.
