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Which of the following statements is INCORRECT if a firm pays $ 3 6 0 0 today for 1 2 months of insurance coverage on

Which of the following statements is INCORRECT if a firm pays $

3600

today for

12

months of insurance coverage on June

1 ?

Cash is decreased on June

1

The firm has traded assets

The firm will receive a future benefit for the June

1

prepayment.

The firm incurs $

3600

of Insurance Expense on June

1

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