On September 1, Year 1, Hales Company paid its rent in advance for the months of October, November, and December. On December 31, Year 1, Hales made the required adjustment to adjust its accounts. How does this year-end adjustment impact the amounts reported on the companys financial statements? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

It decreases an asset.unanswered

It increases an asset.unanswered

It decreases a liability.unanswered

It increases a liability.unanswered

It increases a revenue.unanswered

It increases an expense.unanswered