Preliminary expenses is an example of

Preliminary expenses are an example of fictitious assets. Fictitious assets are those assets that do not have any physical existence, but represent certain expenses or losses incurred by a company that are yet to be written off. Preliminary expenses refer to the expenses incurred by a company during its formation or before the start of its business operations. These expenses include legal fees, registration fees, and other expenses related to the incorporation of the company. Since these expenses cannot be considered as tangible assets, they are classified as fictitious assets. Fictitious assets do not have any realizable value and cannot be sold, as they do not represent any tangible assets of the company. However, these expenses can be written off over a period of time and are reflected in the company's balance sheet as a deferred charge or an intangible asset.