Which of the Following Transactions Results in an Increase in Liabilities

question 76

Multiple Choice

Which of the following transactions results in an increase in liabilities and a decrease in net income?

• A)The accrual of salaries 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.

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Definitions:

Supply of Land

The total land area that is available for a particular use, such as agriculture, industry, or housing, which is often fixed and inelastic in the short term.

MRP Curve

The marginal revenue product curve, illustrating the additional revenue generated from employing one more unit of a factor of production.

Firms' Demand

The quantity of goods or services that businesses are willing and able to purchase at a given price level, often influenced by factors like price changes, consumer preferences, and market trends.

Demand for Land

The desire for land ownership, driven by potential uses such as agriculture, residential, commercial, or industrial development.