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

Deferred revenue

Step-by-step explanation:

Deferred revenue - Deferred revenue is money received by a company in advance of having earned it. In other words, deferred revenues are not yet revenues and therefore cannot yet be reported on the income statement. As a result, the unearned amount must be deferred to the company's balance sheet where it will be reported as a liability.