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.The accrual of wages expense at year-end recognizes an expense that decreases net income, and creates wages payable which increases liabilities.

Question

Quizplus · Accepted Answer

The accrual of wages expense at year-end recognizes an expense that decreases net income, and creates wages payable which increases liabilities.

Which of the Following Transactions and Events Results in an Increase