How Can Accrual Adjustments for Interest Earned but Not Yet

question 69

Multiple Choice

How can accrual adjustments for interest earned but not yet collected affect the balance sheet and the income statement?

• A) Accrual adjustments can increase assets and increase revenues.
• B) Accrual adjustments can increase liabilities and decrease expenses.
• C) Accrual adjustments can decrease assets and decrease expenses.
• D) Accrual adjustments can increase assets and increase expenses.

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