Should advertising expenses for the first quarter 2005 be reported with 2004 expenses?

It depends... has it been paid in the financial year of jan 04 to dec 04? If so then you can post it... but it will be noted as a PREPAYMENT.. but I don't see why not.

99% certain it would be:

Deffered expense is an asset. It is recorded when a liability is recorded, but the related expense will be incurred only in the future.