For the Following Transaction,identify the Type of Change That Would

question 18

Multiple Choice

For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
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At the end of the accounting period,3 months' interest is owing to the company from the bank on a term deposit with the bank.

• A) A liability increases and another liability decreases.
• B) An asset decreases and a liability decreases.
• C) An asset increases and revenue increases.
• D) An asset increases and another asset decreases.

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Definitions:

Suckers

An organ in some animals specialized for adhesion, or a shoot from the base of a plant stem that can develop into a new plant.

Corms

Short, vertical, swollen underground plant stems that serve as storage organs to survive winter or dry months and to propagate new plants.

Germination

The process by which a plant grows from a seed or similar structure.

Imbibition

The process of absorption of water by plant tissues or seeds, often leading to swelling, which is critical for seed germination and plant growth.