Which of the Following Adjustments Would Require Decreasing the Liabilities

Multiple Choice

Which of the following adjustments would require decreasing the liabilities reported on the statement of financial position?

A) A company uses $400 worth of supplies during the year.
B) A company records $400 worth of depreciation on equipment.
C) A company has earned $400 of revenue collected at the beginning of the year.
D) A company records $400 of wages earned by employees that will be paid next year.