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Which accounts are affected when insurance is paid in advance? a) Cash increases and Insurance Expense decreases. b) Prepaid Insurance decreases and Cash increases. c)

Which accounts are affected when insurance is paid in advance?

a) Cash increases and Insurance Expense decreases.

b) Prepaid Insurance decreases and Cash increases.

c) Prepaid Insurance increases and Cash increases.

d) Cash decreases and Prepaid Insurance increases.

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