Which type of asset is advertisement
Answers
Answer:
Explanation:
Advertisement is an expenditure. The purpose of the advertisement is to generate the business. The benefit of advertisement may remain for one year, two years etc. or more. If the amount of expenditure for advertisement is small, no doubt it is an expenditure for the current year. Here, for small amount of advertisement depends upon business to business.
In case the benefit of advertisement will be there for more than one year, definitely, such expenditure can not be treated for one year. In this case the proportionate expenditure for depreciation is debited to this year and balance is an non Current Asset and shown in Balance Sheet. But for an accounting purpose, it is treated as an expenditure for this year as well as for coming years.