An annual insurance policy is paid in advance by a company. How will the company treat this initial payment and the subsequent expiration of a portion of the policy over time? (Check all that apply.) The initial payment will be recorded as an increase to a Prepaid Insurance account. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account. This prepayment of the policy will initially be treated as an expense and over time, the expired portion will be treated as an asset