Of the following adjusting entries, which one would cause an increase in assets at the end of the period?
A) The entry to record the earned portion of rent received in advance.
B) The entry to accrue unrecorded interest expense.
C) The entry to accrue unrecorded interest revenue.
D) The entry to record expiration of prepaid insurance.

Question

Quizplus · Accepted Answer

The entry to accrue unrecorded interest revenue increases assets because it recognizes interest income that has been earned but not yet received, increasing both assets (typically through an increase in accounts receivable or cash) and revenues.

Of the Following Adjusting Entries, Which One Would Cause an Increase