What are fictious assets , amortization, surplus account in profit and loss

Question

Accepted Answer

Fictitious assets are non-physical assets with no real value, amortization is the gradual write-off of an asset's cost, and surplus account in profit and loss is used to record excess profits.

Fictitious assets are intangible assets that do not have a physical existence, such as goodwill or patents.
Amortization is the process of spreading the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.
Surplus account in profit and loss is used to record profits that exceed what was expected or budgeted for.

Accepted Answer

Fictitious assets vs intangible assets - Indepth comparison.Fictitious assets have no physical existence or realisable value, but the company shows them as a cash expenditure in the books of accounts. They are a part of the assets column in the financial statements, and they are expenses or losses that do not get written off during the accounting period of their occurrence.

What are fictious assets , amortization, surplus account in profit and loss

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