Answer
Fictitious assets do not exist in the real world and have no monetary value, but they always represent actual cash outlays that are deducted from profits. The present value of expected future income in excess of a normal return on tangible asset investment, or the excess of the price paid for a business as a whole over the book value or over the computed or agreed value of all tangible net assets purchased, is known as goodwill.
It’s the benefit and advantage of a company’s good name, reputation, and connections.
Goodwill is an intangible asset because it cannot be touched or felt.
On the other hand, fictitious assets are expenses or losses that have yet to be charged to the profit. As a result, it is impossible to classify it as tangible or intangible.
Goodwill, on the other hand, is not an expense and takes time to develop. It is intangible in nature because it cannot be touched or felt, but goodwill has a measurable value.
As a result, goodwill isn’t regarded as a fictitious asset.
