Heavy expenses incurred at the commencement of business or large amount of advertisement may be spread over a period of time.

Explanation: Heavy or large amount of expenses incurred at the time of commencement of business may be spread over a period of time as we cannot expect a matching income immediately. The business has to earn name, fame, brand and reputation for which a large amount may be spent.  If they are accounted in the first year, the business may have to be closed down.