The End of Period Adjustment to Record Interest on a Note

Multiple Choice

The end of period adjustment to record interest on a note payable accumulated, but not yet paid for the period , paid would require:

A) Increasing expenses and increasing liabilities (note payable)
B) Increasing revenue and increasing liabilities (note payable) .
C) Increasing assets and increasing owner's equity.
D) Increasing owner's equity and decreasing assets.