Final answer:
The account showing a credit balance when employees have worked but are unpaid until the next period is Accrued Liabilities. It represents the company's obligation to pay for wages incurred but not yet paid. The correct option is D.
Step-by-step explanation:
When employees have worked during the period, but the company does not pay them until the following period, the account that will show a credit balance is Accrued Liabilities. This is because the expense has been incurred but not yet paid, creating a liability for the company.
Under accrual accounting, expenses are recognized when they are incurred, not necessarily when they are paid, so the company records the wages as an expense in the current period through a debit to Wages Expense and a credit to Accrued Liabilities. The Accrued Liabilities account represents the company's obligation to pay for goods or services that have been received but not yet paid for.