Question: Clearly explain how the Income Statement and Balance Sheet would be affected if a company incorrectly recorded , what should have been PREPAID INSURANCE, as

Clearly explain how the Income Statement and Balance Sheet would be affected if a company incorrectly recorded, what should have been PREPAID INSURANCE, as INSURANCE EXPENSE this period. Use terms like overstated, understated or no effect and support your answer clearly. Will the Balance Sheet still balance? Why or why not? ASSUME CASH WAS PAID.

Explain clearly why a debit card is called a debit card

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