Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 13 - No. 21)
How does adjusting for accrued income affect the accounting equation?
Increases assets and increases liabilities.
Decreases assets and decreases liabilities.
Increases assets and increases equity.
Decreases assets and increases equity.
Explanation
Accrued income is an asset (receivable) and the revenue (income) increases equity.
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