Source : Webster's Revised Unabridged Dictionary (1913)

Fiction \Fic"tion\, n. [F. fiction, L. fictio, fr. fingere,
   fictum to form, shape, invent, feign. See {Feign}.]
   1. The act of feigning, inventing, or imagining; as, by a
      mere fiction of the mind. --Bp. Stillingfleet.

   2. That which is feigned, invented, or imagined; especially,
      a feigned or invented story, whether oral or written.
      Hence: A story told in order to deceive; a fabrication; --
      opposed to fact, or reality.

            The fiction of those golden apples kept by a dragon.
                                                  --Sir W.
                                                  Raleigh.

            When it could no longer be denied that her flight
            had been voluntary, numerous fictions were invented
            to account for it.                    --Macaulay.

   3. Fictitious literature; comprehensively, all works of
      imagination; specifically, novels and romances.

            The office of fiction as a vehicle of instruction
            and moral elevation has been recognized by most if
            not all great educators.              --Dict. of
                                                  Education.

   4. (Law) An assumption of a possible thing as a fact,
      irrespective of the question of its truth. --Wharton.

   5. Any like assumption made for convenience, as for passing
      more rapidly over what is not disputed, and arriving at
      points really at issue.

   Syn: Fabrication; invention; fable; falsehood.

   Usage: {Fiction}, {Fabrication}. Fiction is opposed to what
          is real; fabrication to what is true. Fiction is
          designed commonly to amuse, and sometimes to instruct;
          a fabrication is always intended to mislead and
          deceive. In the novels of Sir Walter Scott we have
          fiction of the highest order. The poems of Ossian, so
          called, were chiefly fabrications by Macpherson.

Source : WordNet®

fiction
     n 1: a literary work based on the imagination and not necessarily
          on fact
     2: a deliberately false or improbable account [syn: {fabrication},
         {fable}]