Chapter 8, Problem 6QC

Nicholas Corporation accrues the interest expense on a short-term note payable at the end of its fiscal year. Due to this transaction

  a.    current liabilities will decrease and stockholders’ equity will decrease.

  b.    current liabilities will increase and stockholders’ equity will decrease.

  c.    current liabilities will increase and current assets will increase.

  d.    current liabilities will increase and stockholders’ equity will increase.