1. Sheridan College purchased an insurance policy for $3,600 on January 1, which will cover the entire year. Assume the fiscal year is the same as the calendar year. On the college's income statement for the period ended June 30, how much of the prepaid insurance asset will the college have expensed?

A. $3,600. B. $1,500. C. $1,800. D. $2,100

2. Appropriate revenue and expense recognition is required by GAAP.

True or False