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Commerce · Q370

Accounting

Graduate and Post Graduate · Commerce · question 370

Q370

Preliminary expenses are treated as

A.
Fixed asstes
B.
Current assets
C.
Intangible assets
D.
Miscellaneous expenditure
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Preliminary expenses are treated as Miscellaneous expenditure. Preliminary expenses are those that are incurred before incorporation of a company or commencement of business.