Accrued interest resulting from a trade note receivable would have which effect on the categories?
A)Total liabilities would be increased.
B)Total assets would be increased.
C)Owner's equity would be decreased.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

Accrued interest on a trade note receivable represents an amount that the company is entitled to receive in the future, thus it is considered as an asset and would increase the total assets of the company. It does not affect total liabilities or owner's equity.

Accrued Interest Resulting from a Trade Note Receivable Would Have