1.If a utilities expense is incurred in February but is not paid until March, the following will be an effect on the financial statements in February

A.An expense decreases

B.A liability increases

C.An asset increases

D.An asset decreases

2.Beattie Inc. paid $3,600 for one year insurance effective January 1. What is the dollar amount that needs to be adjusted to Insurance expense at the end of January?

3.Beattie Inc. paid $3,600 for one year insurance effective January 1. What is the dollar amount that remains in Prepaid Insurance at the end of January?