Question

Baltimore company paid cash to purchase insurance that would protect the company during the coming year. What would this event do to total assets?

Answer 1

When a Baltimore company pays cash to purchase insurance, it would increase its total assets.

Step-by-step explanation:

When a Baltimore company pays cash to purchase insurance, it would increase its total assets. Insurance is considered an asset because it provides protection and financial security to the company. By purchasing insurance, the company increases its overall value and assets.