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On November 1,2014,a Company Using Accrual-Basis Accounting Pays $1,000,000 for a Television

Question 34

Multiple Choice

On November 1,2014,a company using accrual-basis accounting pays $1,000,000 for a television advertising campaign.Commercials will run evenly over six months beginning on November 1,2014.How much Advertising Expense will be reported on an income statement prepared for the year ended December 31,2015?


A) $333,333
B) $500,000
C) $666,667
D) $1,000,000

Correct Answer:

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