Question

True or False: A company should capitalize advertising expenses if they are expected to produce long term benefits. Group of answer choices True False

Answer 1

Answer:

False

Explanation:

When a cost that is in occurred will have been used, consumed or expired in a year or less it is typically considered an expense. Conversely, if a cost or purchase will last beyond a year and will continue to have economic value in the future, the it's typically capitalized.