Question

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

Answer 1

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.