A company purchased a 12 month insurance policy on October 1 for $1,200. On the December 31 annual financial statements, $900 is reported as a expense and $300 is reported as an asset $1,200 is reported as an expense $1,200 is reported as an asset $300 is reported as a expense and $900 is reported as an asset Correct Answer $300 is reported as a expense and $900 is reported as an asset