Which of the following describes a 'Fictitious Asset'? MCQ with Answer and Explanation

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Which of the following describes a 'Fictitious Asset'?

A. Assets without physical existence but having realizable value like patents

B. Current assets held in foreign currency

C. Expenses/losses written off over a period of time, having no realizable value

D. Assets created to evade taxes

Answer: Option C

Solution (By JKSSB Mock Tests)

Fictitious assets (e.g., preliminary expenses, debit balance of P&L) are not true assets; they are unamortized expenses/losses with zero resale value.

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Which concept attempts to measure the cost and benefits of a firm's activities to the society?

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Correct Answer: Option C

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Correct Answer: Option B

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ECL model is forward-looking, recognising impairment based on expected losses rather than incurred losses.

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Correct Answer: Option A

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