Question: What effect does the adjusting entry for interest earned but not yet received have on the accounting equation? It results in an increase in assets
What effect does the adjusting entry for interest earned but not yet received have on the accounting equation?
It results in an increase in assets and stockholders' equity.
It results in a decrease in assets and stockholders' equity.
It results in an increase in assets and decrease in stockholders' equity.
It results in an increase in assets and liabilities.
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