An adjusting entry that increases a revenue and decreases a liability is known as a(n) :

A) Accrued expense.
B) Deferred expense.
C) Deferred revenue.
D) Accrued revenue.
E) Depreciation.

Accrued Revenue

Income that has been earned but not yet received or recorded at the date of the financial statements.

Deferred Revenue

Revenue that has been received by a company for goods or services yet to be delivered or performed.

Accrued Expense

An accounting term referring to an expense that has been incurred but not yet paid, leading to an accounts payable.