Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 7 - No. 42)
Which of the following entries would increase both assets and equity?
To recognize the income earned but not yet received by the end of the accounting year.
To balance off the incident at the end of the accounting year.
To reduce three months of accrual rental income.
To record three months of rent paid in advance.
Explanation
Accrued income increases assets and equity, as income statement increases.
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