If the Adjusting Entry to Accrue Interest of $1,000 on a Note

Multiple Choice

If the adjusting entry to accrue interest of $1,000 on a note receivable is omitted,then:

A) assets,net income,and stockholders' equity are overstated by $1,000.
B) assets,net income,and stockholders' equity are understated by $1,000.
C) liabilities are understated by $1,000,net income is overstated by $1000,and stockholders' equity is overstated by $1,000.
D) assets are overstated,net income is understated,and stockholders' equity is understated.