Question

Deferring the current period's advertising by reducing the number of television spots run in December and running more than planned in January of next year.

Acceptable or Unacceptable?

Answer 1

Acceptable

Step-by-step explanation:

If the company believes it can lower their advertising expenses by reducing TV spots in December, it is a normal operation. What shouldn't be considered normal, would be that the TV spots in December are not reduced, but the billing is delayed so that it can be included in next year's income statement. All expenses incurred during the year, should be included in the income statement of that year.