Where would advertising costs normally be found?
Answers
Explanation:
What Are Advertising Costs?
=>> Advertising costs are a type of financial accounting that covers expenses associated with promoting an industry, entity, brand, product, or service. They cover ads in print media and online venues, broadcast time, radio time, and direct mail advertising. Advertising costs will in most cases fall under sales, general, and administrative (SG&A) expenses on a company's income statement.
Understanding Advertising Costs
=>>Advertising costs are sometimes recorded as a prepaid expense on the balance sheet and then moved to the income statement when sales that are directly related to those costs come in. For a company to record advertising expenses as an asset, it must have reason to believe those specific expenses are tied to specific future sales. Then, as those sales occur, those advertising expenses are moved from the balance sheet (prepaid expenses) to the income statement (SG&A).
Example of Advertising Costs
=>> For example, if a company launches a direct mail campaign and it knows that future sales are due to that campaign, it will record the cost of the campaign on its balance sheet as an asset, a prepaid expense. Over time, as customers respond to the campaign, those direct mail expenses will be moved from the prepaid expense category to the advertising cost category.
Answer:
on balance sheet withing intangiable assests