On July 1, year 1 ABC company paid birr 8100 for 3 years insurance coverage whic

On July 1, year 1 ABC company paid birr 8100 for 3 years insurance coverage whic

On July 1, year 1 ABC company paid birr 8100 for 3 years insurance coverage which of the following transaction on year’s 3 financial statement.
A. No change both prepaid insurance and insurance expense
B. decrease prepaid insurance but increase insurance expense
C. Increase prepaid insurance and decrease insurance expense
D. No change in prepaid but increase insurance expense.