[Solved] Preliminary expanses not written off are treated as

Preliminary expanses not written off are treated as

a) Fixed assets

b) Intangible assets

c) Fictitious assets

d) None of these

Answer: (c) Preliminary expanses not written off are treated as Fictitious assets. They are recorded as assets in financial statements only to be written off later. Promotional expenses, Preliminary expenses, Discounts allowed on the issue of shares, and Loss incurred on the issue of debentures are examples of fictitious assets. Prepaid rent is not a fictitious asset.

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