Which of the Following Does Not Correctly Describe the Following $\quad$

question 69

Multiple Choice

Which of the following does not correctly describe the following journal entry? Interest receivable
$\quad$$\quad$ Interest income

• A)Total assets increase.
• B)The transaction is an example of an accrual.
• C)Stockholders' equity is not affected.
• D)Net income increases.

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Definitions:

Financing Activity

Transactions involving the flow of cash between a company and its owners and creditors, including issuing stocks, paying dividends, and borrowing or repaying loans.

Transactions

The financial events that affect the assets, liabilities, and equity of an entity, involving transfers or exchanges between two parties.

Cash Flows

The net amount of cash being transferred into and out of a business.