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:

Licensed Practical Nurse

A nurse who has completed a practical nursing program and passed a licensing exam, providing basic medical care under the supervision of registered nurses and doctors.

Intravenous Medication

Medication administered directly into the veins, allowing for rapid absorption and effect.

Nitroglycerin

A medication used to prevent and treat chest pain (angina) by relaxing and widening blood vessels to improve blood flow to the heart.

Sublingual

Pertaining to or applied under the tongue, a method often used for the administration of certain medications for rapid absorption.