Tara is a junior clerk at an auditing firm. Her supervisor asks her to close all the fictitious accounts before they prepare the Trial Balance. Which account can be termed as a fictitious account?

A. fixed assets

B. current assets

C. capital

D. expenses

D. expenses

Explanation:

Generally, the fictitious account is a type of asset which is not termed as current or fixed. Instead, it can be termed as expenses because of its short-term nature. More precisely, the fictitious account means a fake account. Therefore, it has to be written off as soon as possible. Accountants write-off those fictitious accounts against the company's earnings. Therefore, it can be termed as an expense instead of fixed or current assets. Capital is out of the question.