Preliminary expenses is an example of
fictitious assets
liquid assets
wasting assets
tangible assets
Explanation
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Preliminary expenses are those expenses that are incured before the establish of a corporation like registration expenses. In this case the company doesn't know were to classify the expense so that's why we classify them as fictitious or fake asset. They are just there in the balance sheet to be written off or deducted from net profit. Alternatively. .. Fictitious asset are expense that are not found in p&l account but tends to reduce the cash in hand of the business so in order to make the balance sheet balance we tend to create room for this type of asset under current asset in order to make the balance sheet balance and to be written off against profit which tends to reduce the liability and asset side of the balance sheet making it balance.
Preliminary expenses are those expenses that are incured before the establish of a corporation like registration expenses. In this case the company doesn't know were to classify the expense so that's why we classify them as fictitious or fake asset. They are just there in the balance sheet to be written off or deducted from net profit
