What Is the Impact on the Accounting Equation of Recording

question 132

Multiple Choice

What is the impact on the accounting equation of recording the accrual of interest expense?

• A) Assets and liabilities both decrease.
• B) Assets and shareholders' equity both decrease.
• C) Liabilities decrease and shareholders' equity increases.
• D) Liabilities increase and shareholders' equity decreases.

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Definitions:

Lazy

Characterized by a lack of effort or unwillingness to expend energy in tasks.

Slow Shifts

Gradual changes or movements towards a different state or condition.

Ingratiation

A psychological technique in which an individual attempts to become more appealing to others through flattery or other forms of manipulation.

Perceptual Distortion

The misinterpretation or misrepresentation of a perceived stimulus, affecting judgment or decision-making.