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What effects would the accrual of $ 1 6 0 of interest on a note payable have on financial statements? I Balance sheet: Liabilities are

What effects would the accrual of $160 of interest on a note payable have on financial statements?
I Balance sheet: Liabilities are decreased by $160
II Income statement:
Expenses are increased by $160
III Balance sheet:
Retained earnings are decreased by $160
IV Balance sheet:
Cash assets are decreased by $160
Balance sheet:
Liabilities are increased by $160
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