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Asked by namish on :Jun. 30, 2015

What is the meaning of preliminary expense?

What is the meaning of preliminary expense?

What is the meaning of preliminary expense?

0

Chiranjibi Aug. 29, 2018

A company is a person brought to life by the law of the country. And in the process of bringing a company to life, real people invest their time and money. It means the company, when it finally comes to existence, is already in debt to these people for that money they spent.

The money that the people spent on the company before it came into existence are called preliminary expenses. These expenses are really extraordinary in nature because these happen only once in the lifetime of a company.

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