Author Question: John pays cash to buy auto insurance for a three-year period starting January 1.What is the ... (Read 83 times)

mmm · **on:** Jul 5, 2018

John pays cash to buy auto insurance for a three-year period starting January 1.What is the accounting effect of this transaction on John's records when he makes the payment?

a. An asset increases and an asset decreases
b. An asset increases and a liability increases
c. Equity increases and a liability decreases
d. An asset decreases and equity decreases

Question 2

A(n) ___________________ ___________ is the attribute whose value is unique for every entity that will appear in the database.
Fill in the blank(s) with correct word