Introduction:
Accumulated losses or advertisement suspense are shown on the asset side of the balance sheet due to the way they are classified under accounting principles. In order to understand why these items appear on the asset side, it is important to have a clear understanding of what they represent.

Accumulated Losses:
1. Definition: Accumulated losses represent the cumulative negative balance of a company's retained earnings over time. These losses occur when a company's expenses exceed its revenues.
2. Classification: Accumulated losses are shown on the asset side of the balance sheet as a negative reserve or contra-asset. This is because they reduce the overall value of the company's equity.
3. Impact on Financial Statements: Accumulated losses are deducted from the company's total equity, resulting in a lower net equity value. This reduction in equity reflects the company's historical losses and can impact its financial stability and creditworthiness.

Advertisement Suspense:
1. Definition: Advertisement suspense refers to the prepayment made by a company for advertising services that will be received in the future.
2. Classification: Advertisement suspense is shown on the asset side of the balance sheet as a current asset. This is because the prepayment represents an economic benefit that the company will receive in the future.
3. Impact on Financial Statements: By classifying advertisement suspense as an asset, the company recognizes the economic value of the prepayment. It implies that the company has already made an expenditure for future benefits and ensures accurate reporting of the company's financial position.

Reasons for Classification:
1. Consistency: Classifying accumulated losses and advertisement suspense on the asset side ensures consistency in financial reporting across different companies and industries.
2. Transparency: By showing accumulated losses on the asset side, stakeholders can easily identify the historical losses incurred by the company. Similarly, classifying advertisement suspense as an asset provides transparency regarding the prepayment made by the company.
3. Balance Sheet Presentation: The asset side of the balance sheet represents the economic resources owned or controlled by the company. Accumulated losses and advertisement suspense, although having a negative impact, are still considered as resources or claims against the company's assets.

Conclusion:
Accumulated losses and advertisement suspense are shown on the asset side of the balance sheet to ensure consistent and transparent financial reporting. While accumulated losses reflect historical losses that reduce equity, advertisement suspense represents a prepayment for future benefits. By classifying these items as assets, the balance sheet accurately represents the company's financial position and resources.