On December 1, a company pays $3,600 for a 36-month insurance policy. After one month, accrual accounting requires $ insurance expense be reported on the income statement ending December 31. However, if cash basis accounting is used, $ of insurance expense would be reported at the time of purchase. (100/3,600) of (100/3,600)

On December 1, a company pays $3,600 for a 35 month insurance policy. After one month, accival sccounting requires $ (to0) 3.600) of Mourance expease be reported on the income statement ending December 31 However, if cash basis accounting is usod. of imurance ewpense would be reported st the lime of puchase (100/3.600)