Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Using Your Judgment - Financial Reporting Problem - Page 72: d

Answer

As soon as advertising expenses are incurred, they are charged to the expense account, which aligns with the expense recognition policy. The advertising expenses become period costs; this is according to the assumption of periodicity. The advertising expenses are reported in P & G's consolidated statements of earnings.

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