In an adjusting entry for expenses incurred but not yet paid Blank$\_\_\_\_\_\_.$

Multiple choice question.

the liability recorded when cash was received is increasing as the expense is incurred

a liability is decreasing since cash is being paid for an expense incurred at the time of the adjustment

a liability is increasing since cash will be paid in the future due to the expense incurred

the liability recorded when cash was received is decreasing as the expense is incurred