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WAEC Financial Accounting 1995 Question 33

Question 33

Final Accounts of a Sole Trader

Which of the following is a fictitious asset?

  1. A.Preliminary expenses
  2. B.Fixtures and fittings
  3. C.Cash in hand
  4. D.Land and buildings
  5. E.Investment.
Show the answer and explanation

Answer: A (Preliminary expenses)

Explanation

Preliminary expenses have no real value; they are a fictitious asset.