Which of the following would not be a result of the adjusting entry to record accrued interest on a note payable?
A)A decrease in net income.
B)A decrease in stockholders' equity.
C)An increase in liabilities.
D)A decrease in current assets.

Question

Quizplus · Accepted Answer

Recording accrued interest on a note payable increases interest expense, which decreases net income and, consequently, stockholders' equity. It also increases liabilities (interest payable). However, it does not directly affect current assets, making D the correct choice.

Which of the Following Would Not Be a Result of the Adjusting