Question: What is the effect on the accounting equation when a company prepays for insurance for the upcoming year? Group of answer choices a. Assets increase,

What is the effect on the accounting equation when a company prepays for insurance for the upcoming year? Group of answer choices

a. Assets increase, liabilities increase

b. Assets increase, expenses increase

c. Liabilities increase, stockholders equity increases

d. Assets increase, assets decrease

e. Assets increase, liabilities decrease

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