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Assume that a company has paid for advertising and that the ad has already appeared. The company chose to report the item as prepaid advertising
Assume that a company has paid for advertising and that the ad has already appeared. The company chose to report the item as prepaid advertising and includes it among the assets on the balance sheet. Previously, the company had always expense expenditures such as this. This practice is a violation of which of the following?
a. Generally accepted accounting principles
b. expense recognition concept
c. The consistency concept
d. All of the above.
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