Question
Where are the fictitious assets shown in the financial
statements?Solution
Fictitious assets are assets that do not have any tangible or physical existence but are shown on the asset side of the balance sheet. These assets are not real assets, and their value cannot be realized or recovered by the company. Fictitious assets are created by the accounting process, and they represent expenses or losses that have been incurred by the company but have not yet been written off as an expense.
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