On April 1, Smart, Inc. paid $7,200 for an insurance premium on a three-year insurance policy. How

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On April 1, Smart, Inc. paid $7,200 for an insurance premium on a three-year insurance policy. How does this transaction affect Smart's accounts?

a. Increase prepaid insurance and decrease cash by $7,200 each

b. Increase prepaid insurance and decrease retained earnings by $7,200 each

c. Increase insurance expense and decrease cash by $7,200 each

d. Increase unearned insurance and decrease cash by $7,200 each

Related Book For answer-question

Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Posted Date: Sep 05, 2018 12:53 AM

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On April 1, Smart, Inc. paid $7,200 for an insurance premium on a three-year insurance policy. How

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