Which is one effect of the following journal entry?
A)Increases liabilities
B)Increases equity
C)Decreases liabilities
D)Decreases assets

Name: Which is one effect of the following journal entry? A)Increases liabilities B)Increases equity C)Decreases liabilities D)Decreases assets
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Question

Which is one effect of the following journal entry? 
A)Increases liabilities 
B)Increases equity 
C)Decreases liabilities 
D)Decreases assets

Quizplus · Accepted Answer

This journal entry to accrue interest expense increases interest payable (a liability) and increases interest expense, which decreases equity.

Which Is One Effect of the Following Journal Entry