1. You are accountant at Global Consulting. The marketing manager is excited about the success of their new marketing campaign. She boasts, We spent $1 million on marketing in 2016 and we have already seen an increase in sales of 5% this year! When you show her the financial statements, she exclaims, You have made a big mistake! I want to see $1 million recorded under assets for our investment in marketing!

Required: Explain to manager whether money spent on marketing should be recorded as an asset on the balance sheet. Be sure to explain your reasoning based on the definition of an asset.