Failure to Prepare an Adjusting Entry at the End of a Period

Multiple Choice

Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause

A) net income to be overstated.
B) an understatement of assets and an understatement of revenues.
C) an understatement of revenues and an understatement of liabilities.
D) an understatement of revenues and an overstatement of liabilities.