The Adjusting Entry to Record the Accrual of Interest Expense

question 112

Multiple Choice

The adjusting entry to record the accrual of interest expense has what effect on the basic accounting equation?

• A)Increase assets,increase liabilities
• B)Decrease assets,decrease liabilities
• C)Increase assets,decrease liabilities
• D)Increase liabilities,decrease stockholders' equity
• E)Decrease liabilities,increase stockholders' equity