4. Advertising is any communications with a target audience that is designed to persuade that audience to take some type of action, such as buying a product or service. Advertising can also be intended to build awareness of an industry or brand. Examples of advertising are billboards, web site banner ads, radio announcements, and podcast sponsorships, as well as the production costs for any of these items. Advertising expense is the consumed cost of these activities. Would you consider advertising to be an expense or an asset