On January 1, 2021, Alice & Co. lends $5,000 to an employee and accepts a 24-month, 10% note. At the end of 2021, what effect will the adjustment for accrued interest revenue have on the Alice & Co.'s financial statements?
A. Increases stockholders' equity.
B. Decreases revenue.
C. Decreases assets.
D. Increases expense.
Answer: A
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