On August 30th, a newly-formed company pays 600 dollars for a 6-month insurance policy with coverage beginning on September 1st. Which of the following statements is correct?

Answers:

a). The companys total assets have increased

b). The companys total assets have decreased

c).The company has acquired a prepaid insurance asset

d). The company has insurance expense for the month ending on August 31st

Why wouldnt the total assets increase if the company is purchasing prepaid insurance?