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.

Increase Liabilities

The process or action that results in a higher amount of obligations or debts owed by an entity to others.

Decrease Net Income

Refers to a reduction in the net earnings as reported on an entity's income statement, influenced by costs, expenses, or losses.

Accrual

The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash transactions occur.