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John pays cash to buy auto insurance for a three - year period starting January 1 . What is the accounting effect of this transaction
John pays cash to buy auto insurance for a threeyear period starting January What is the accounting effect of this transaction on John's records when he makes the payment? Select one: a An asset decreases and equity decreases. b An asset increases and an asset decreases. c An asset increases and a liability increases. d Equity increases and a liability decreases.
John pays cash to buy auto insurance for a threeyear period starting January What is the accounting effect of this transaction on John's records when he makes the payment?
Select one:
a An asset decreases and equity decreases.
b An asset increases and an asset decreases.
c An asset increases and a liability increases.
d Equity increases and a liability decreases.
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