Which of the Following Reflect the Balances of Prepayment Accounts

Multiple Choice

Which of the following reflect the balances of prepayment accounts prior to adjustment?

A) Statement of financial position accounts are understated and income statement accounts are understated.
B) Statement of financial position accounts are overstated and income statement accounts are overstated.
C) Statement of financial position accounts are overstated and income statement accounts are understated.
D) Statement of financial position accounts are understated and income statement accounts are overstated.