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:

Adipose Tissue

A type of body tissue that stores fat, serving both as a source of energy and as a form of insulation for the body.

Liver

A vital organ in vertebrates and some other animals which plays a key role in metabolism, detoxification, and various other bodily functions.

Glucagon

A hormone produced by the pancreas that raises blood glucose levels by promoting glycogen breakdown and glucose release by the liver.

Mammary Glands

Specialized organs in mammals that produce milk to nourish newborn offspring, consisting of lobular glands that are modified sweat glands.