The company should record expense in year 2012 only because it will run during 2012, so as per accrual concept of accounting company should record expense in year 2012 and should not record as prepaid. Prepaid expenses would have been in case the advertisment would have run in year 2013, in that case we would have recorded as prepaid. But here the advertisment will run this year and as expense have been incurred this year company should record in 2012 itself. Here the CEO's motive is of selfish nature because of his bonus involved. Company's do follow matching principle of accounting which means to offset revenue with expense incurred for generating that income.
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