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What effects would the accrual of $200 of interest on a note payable have on financial statements? I. Balance sheet: Liabilities are decreased by $200
What effects would the accrual of $200 of interest on a note payable have on financial statements?
I. | Balance sheet: Liabilities are decreased by $200 |
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II. | Income statement: Expenses are increased by $200 |
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III. | Balance sheet: Retained earnings are decreased by $200 |
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IV. | Balance sheet: Cash assets are decreased by $200 |
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V. | Balance sheet: Liabilities are increased by $200 |
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Select one:
A. II, IV and V
B. II, III and V
C. II, III and IV
D. I, II and III
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