Which of the following transactions and events results in an increase in liabilities and a decrease in net income?
A)The accrual of wages expense at year-end.
B)Collecting cash from a customer for services to be provided in the future.
C)The accrual of revenue earned at year-end.
D)Adjustment of the unearned revenue account for revenue earned during the period.

Question

Quizplus · Accepted Answer

The accrual of wages expense at year-end increases liabilities (wages payable) and decreases net income because it represents an expense that has been incurred but not yet paid.

Which of the Following Transactions and Events Results in an Increase