The cost of advertising purchased for the current month is considered an expense, NOT an asset because

Question

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An expense is a cost that has already been incurred and used up, meaning the benefits of the expense have already been used. Therefore, it is not an asset but rather an expense. Option A and B are incorrect because future benefits or cash inflows do not change the fact that the expense has already been used. Option D is incorrect because the expense has already been incurred, and therefore it has been used, even if it has not been fully paid for yet.

The Cost of Advertising Purchased for the Current Month Is