What Is True Regarding Unearned Items

What is true regarding Unearned items?

A) Unearned items consist of revenue a company has not earned and an adjustment is necessary to increase the revenue once it is earned and decrease the liability once the obligation is satisfied.
B) Unearned items consist of expenses that have not yet been incurred. A company must reduce an asset,prepaid,and increase expense for what has been incurred.
C) The adjusting journal entry related to Unearned items would increase a liability and reduce revenue to recognize what has been earned.
D) The adjusting entry related to Unearned items records the amount that needs to be transferred between two accounts,an Expense and a Liability,to show the appropriate balance in each account.