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5The reporting company pays $700 for insurance coverage relating to the past few months. The amount was previously recorded in the companys accounting system as

5The reporting company pays $700 for insurance coverage relating to the past few months. The amount was previously recorded in the companys accounting system as the cost was incurred. Apparently, computers were programmed to accrue this expense periodically. What is the financial impact of paying for an expense if the balance has already been recognized over time as the liability grew larger?

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