Answer:
A. The accrual of wages expense at year-end.
Explanation:
At the end of the year based on accrual accounting, wages incurred but not paid to workers has to be recognised.
So the wage expense is debited for the outstanding wages at end of the year. This results in a decrease in net income because an expense is recognised.
Wages payable is credited for the amount accrued. Wages payable is a liability account so this results in an increase in the firm's liability.
