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4 votes
As a business accumulates more

debt, interest expense will increase.
This specific example demonstrates
how the income statement is linked
with
A. Assets
B. Accounts Receivable
C. Shareholder's Equity
D. Liabilities

1 Answer

5 votes

Answer:

The correct answer is D. Liabilities.

Step-by-step explanation:

As a business accumulates more debt, its liabilities increase, resulting in an increased interest expense on the income statement.

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