Preliminary expense is which type of asset?


Dear Student,

These are Fictitious Assets of the company.

Explanation: Preliminary expenses are the miscellaneous expenditure of the business & are to be written off over the life determined. Amortised part is charged off to Profit & Loss A/c whereas the un-amortized amount is recorded under  "Other Non-Current Assets" on the Assets side of the Balance Sheet.

Regards




 

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