Stratford decided in October of the current fiscal year to start a massive advertising campaign to enhance the marketability of its product. In November, the company paid $750,000 for advertising time on a major radio chain to advertise its product during the next 12 months. The chief accountant expensed the $750,000 in the current fiscal year on the basis that "once the money was spent, it could never be recovered from the radio chain".
State whether or not you agree with the accounting treatment given to this disbursement and support your opinion with principles discussed in the chapter on the Criteria for Accounting Choices.

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The Answer of Stratford decided in October of the current fiscal year to start a massive advertising campaign to enhance the marketability of its product. In November, the company paid $750,000 for advertising time on a major radio chain to advertise its product during the next 12 months. The chief accountant expensed the $750,000 in the current fiscal year on the basis that "once the money was spent, it could never be recovered from the radio chain".
State whether or not you agree with the accounting treatment given to this disbursement and support your opinion with principles discussed in the chapter on the Criteria for Accounting Choices.

Stratford Decided in October of the Current Fiscal Year to Start