Jack corps started manufacturing business of watches. He spends 1 million dollar for campaigning his brand world wide.

Question

The amount 1 million dollar at the time of transaction is considered : (a) Asset (b) Revenue (c) Capital (d) Liabilities (e) None of These

Answer 1

The $1M is an advertising expense on the income statement and is not capitalized as an asset, is not a revenue, is not a capital expenditure or a liability. Hence the answer ie e) None of the above