Is prepaid advertising an asset?
Understand the Problem
The question is asking whether prepaid advertising can be classified as an asset in accounting terms. This involves understanding the nature of prepaid expenses and how they are treated in financial reporting.
Answer
Yes, prepaid advertising is an asset.
The final answer is Yes, prepaid advertising is an asset.
Answer for screen readers
The final answer is Yes, prepaid advertising is an asset.
More Information
Prepaid advertising is recorded as a current asset on a company’s balance sheet and as the advertising services are consumed, the asset amount is amortized and recognized as an expense.
Sources
- Prepaid advertising | AccountingTools - accountingtools.com
- Prepaid Expense: Definition and Example | Investopedia - investopedia.com
- Prepaid assets | BlackLine - blackline.com
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