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What do you mean by Preliminary Expences
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Answer Posted / sunny
Preliminary expenses are those costs incurred by the
promoters, including the prospective business owner before
the incorporation of that business. In order words, they
are also called, pre-incorporation or pre-operational
expenses. They are normally shown as current assets in the
balance sheet of the business after incorporation and
written off in the profit and loss account for the period
of three years.
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