Should advertising costs be recognized as an asset or an expense?

Question

The answer can be any 1, or can be both.

Answer 1

It cannot be an asset, unless your advertising expense is in promotional products (i.e. glassware for a bar that can be sold to customers). For it to qualify as an asset or "both", it would have to be something that could be depreciated and/or sold.

For example, a production machine can be considered both an asset and an expense, as it can be sold if you upgrade to another one. Very seldom do advertising costs result in anything that would hold any value to anyone but the advertiser.

Answer 2

advertising costs be recognize as expense .

Answer 3

According to HS bookkeeping, it is an expense, because you are expending money--assets to get to tangible service. However, on the plus side of the equation, you are also hoping that expenditure of "x" dollars generates enough revenue to pay for the advertising cost plus generate a profit. So, it can be both.

Answer 4

Expense

Answer 5

look when you advertise you do it so ppl know abt ur product which indirectly increases ur sales any money spent to increase profitability is known as an expense so u consider advertising as an expense

Answer 6

Advertising costs are always an expense.
"Expenses are gross outflows incurred in generating revenues."1
Advertising is utilized in hopes of generating added income, thus it is an expense.