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Can Advertising Cost Be Capitalized?

Accountants report expenses as anything going out.

Though a correlation can be made between sales & revenue which eventually trickles down to net profit we can’t capitalized advertising cost.

Advertising is like research & development it is spent to better develop a product line or service.

Advertising helps develop sales but we do not report advertising style revenue on an income sheet or balance sheet.

Damian Sullivan
Damian Sullivan CEO & Founder of Digital Marketing Hack The Woodlands, Tx Digital Marketing Consultant

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