Fictitious Assets
Define the terms Fictitious Assets?
Expert
There are some expenditures or expenses, the benefit of which is not restricted to one specific year. Hence, the whole of such expenses can’t be charged to the gain and loss account at once and therefore they are deferred.
For example: Discount of Issue of Debentures, Share Issue Expenses, and so forth.
As well the debit balance of Profit and Loss Account (loss) is a Fictitious Asset. This is to be cancelled out or adjusted with gain of subsequent years or reserves.
Fictitious Assets are not the assets, that are tangible and visible such as machinery, buildings, computer however the expenditure on several activity, that is considered as a Capital expenditure rather than Revenue expenditure. Whenever expenditure incurred amount is not debited to gain and loss A/C however shown as fictitious asset and over a period the amount is written off or debited to P & L account. For illustration Share issue expenses by a Corporate, it is not debited to P& L. Account in the year in which it is incurred however debited in installments as decided by the Management over few years.
What are the various Accounting Treatment of Goods?
Explain internalization theory of the FDI. Specify the strength and weakness of this theory?
Money fund: Money fund is as well main instrument of the money market. This fund that can be employed for fulfilling the requirements of banks to repay the customers.
Please help me in solving this requirement
Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis
Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets. How will non-tradable asset be priced?
Revenue: The amount (sum) of money which a company really receives throughout a specific period, comprising discounts and deductions for the returned merchandise. This is the "top line" or "annual income" figure from which costs are subtracted to find
In Modigliani-Miller equation, why is market value of the levered firm is more than the market value of an equivalent unlevered firm?
Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?
If cost advantage of the interest rate swaps might likely be arbitraged away within the competitive markets, what other explanations exists in order to describe quick establishment of interest rate swap market?
18,76,764
1932235 Asked
3,689
Active Tutors
1430142
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!