Register now or log in to join your professional community.
Fixed Asset are visible, this asset is require to running the business. it has a specific depriociating value which reduce the asset value in every month.
The purpose of creating a fictitious asset is to account for expenses (such as those incurred in starting a business) that cannot be placed under any normal account heading. Fictitious assets are written off as soon as possible against the firm's earnings.
Fixed assets are visible assets for example land, building, inventory and factory premises while fiticious assets are those which are not actually assets, but for the sake of accounting one has to record them, promotional expenses, preliminary expenses, discount allowed on issue of shares and loss incurred on issue of debentures or goodwill, patents, copyrights, trademarks etc.
Fixed assets, also known as tangible assets or property, plant, and equipment (PP&E), is a term used in accounting for assets and property that cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, which are described as liquid assets.
Fixed Assets are the Asset represented by tangible possession or Property.eg(Land&Building,Mechinery,Furnitures etc)But fiticious assets not Represented by tangible Possession or Property.eg(Discount on issue of Shares)
