What Effect Does the Adjusting Entry for Interest Earned but Yet

Multiple Choice

What effect does the adjusting entry for interest earned but yet not received have on the accounting equation?

A) It results in an increase in assets and stockholders' equity.
B) It results in a decrease in assets and stockholders' equity.
C) It results in an increase in assets and liabilities.
D) It results in an increase in assets and decrease in stockholders' equity.