In addition to 98,400 already paid in 2012, the advertising agent has sent an invoice for a

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In addition to £98,400 already paid in 2012, the advertising agent has sent an invoice for a further amount of £61,800. £45,000 of the invoice is for a television campaign commencing January 2013. Which of the following amounts will you report as an asset at the year-end 31 December 2012?

(a) £61,800 remaining unpaid for advertising

(b) £160,200 the total advertising cost expected to improve the sales in future years

(c) £98,400 because that is the portion already paid for generating future income

(d) £45,000 included in the invoice for a television campaign to commence in January 2013

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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