Are advertising expenses is considered an asset or liability?

it is an asset

Alternate answerAdvertising expenses enhance the brand name of a company. The market value of a company might very well increase as a result of advertising.

Accounting principles (US GAAP and IFRS) nevertheless do not recognize marketing expenditures as an asset, because the future benefits may not be measured realibly. In short: marketing expenses are not an asset, but are expensed instead.

Note: advertising expenses may result in a liability (Accounts Payable) if the company still needs to pay the advertising company. The liability disappears when the bills have been paid.