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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.

How will you verify the fictitious asset?

Auditor should verify that expenses incurred are properly authorised by a responsible person. 2. He should ensure that fictitious assets are treated as deferred revenue expenditure. The auditor should confirm that the asset is disclosed in the Balance Sheet at the amount of expenditure incurred less amount written off.

Is Depreciation a fictitious asset?

Difference between Fictitious Assets and Fixed Assets In the same manner, fictitious assets have no realizable value. They are only placed on the balance sheet as per the amount that has already been paid. It cannot be depreciated, or sold once it is paid for.

What is meaning of fictitious?

1 : of, relating to, or characteristic of fiction : imaginary fictitious events described in his novel. 2a : conventionally or hypothetically assumed or accepted a fictitious concept. b of a name : false, assumed. 3 : not genuinely felt.

How do you use fictitious in a sentence?

Use “fictitious” in a sentence | “fictitious” sentence examples

  1. We’re interested in the source of these fictitious rumours.
  2. She invented a fictitious boyfriend to put him off.
  3. They bought the materials under fictitious names.
  4. The account he gives of his childhood is fictitious.
  5. His account of the bank robbery was completely fictitious.

Is Fictional a real word?

fictional Add to list Share. Something fictional has been invented, most likely for a book, play, or movie. As the adjective form of fiction, fictional covers all the creative fabrications that arise out of a person’s imagination, which might then enter a novel, a screenplay, or some other form of storytelling.

What is a fictional account?

A fiction is a deliberately fabricated account of something. It can also be a literary work based on imagination rather than on fact, like a novel or short story. The Latin word fictus means “to form,” which seems like a good source for the English word fiction, since fiction is formed in the imagination.

What is meant by fictional storytelling?

Fiction generally is a narrative form, in any medium, consisting of people, events, or places that are imaginary—in other words, not based strictly on history or fact. In its most narrow usage, fiction refers to written narratives in prose and often specifically novels, though also novellas and short stories.