On April 1, Smart, Inc

question 22

Multiple Choice

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 insurance expense and decrease cash by $7,200 each
• B) Increase prepaid insurance and decrease cash by $7,200 each
• C) Increase unearned insurance and decrease cash by $7,200 each
• D) Increase prepaid insurance and decrease retained earnings by $7,200 each

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Definitions:

French-Canadian

Pertaining to individuals of French descent who are residents of Canada, particularly in the province of Quebec.

Indigenous

Pertaining to the original inhabitants of a region, having unique traditions, cultures, and ties to the land prior to colonization or annexation.

Cultural Barriers

Social, linguistic, or psychological obstacles that hinder interaction and understanding between people of different cultures.

Private Ownership

The legal right of individuals or corporations to own property and assets independently of government control.