The correct answer is [B] You are increasing your liability.
When you buy a pair of shoes for $85, your cash balance decreases by $85, which means that your wealth also decreases by $85. This is represented by [A] and [C].
[D] You are incurring an expense is also true, because you are spending money on the shoes.
[E] You are acquiring (non-cash) asset is also true, because you are obtaining an asset (the shoes) that you can use or sell in the future.
[B] You are increasing your liability is not true, because a liability is a debt or an obligation that you owe to someone else. In this case, you are not taking on any debt or obligation by buying the shoes, so your liability does not increase.