The accountant at WooSah! USA made an adjusting entry at the end of February to accrue interest on a note receivable from a customer.The effect of this entry is to:
A)decrease ROI for February.
B)increase ROI for February.
C)decrease working capital at February 28.
D)decrease the acid-test ratio at February 28.

Question

Quizplus · Accepted Answer

Accruing interest on a note receivable increases interest income, which in turn increases net income, leading to an increase in the return on investment (ROI) for February.

The Accountant at WooSah! USA Made an Adjusting Entry at the End