On which date does Jana record a business insurance expense if she pays the insurance bill in full on January 12?

The correct date for recording a business insurance expense is the date on which the payment is made, in this case, January 12. According to the accrual basis of accounting, expenses are recognized when they are incurred or paid, rather than when the benefit is received. Since Jana pays the insurance bill in full on January 12, this is when the expense is recognized in her financial records.

Other dates mentioned do not align with the payment date. January 1 would not be applicable since it predates the actual payment. January 15 and January 31 are also incorrect as they are after the expense has been incurred. By recording the expense on January 12, Jana ensures her financial statements accurately reflect her business's current obligations.