If a Company Incorrectly Records a Payment as an Asset

Multiple Choice

If a company incorrectly records a payment as an asset instead of an expense,how will this error affect net income in the current period?

A) Net income will be too high.
B) Net income will be too low.
C) Net income will not be affected by this error in the current period,but will be too low in a later period.
D) Net income will never be affected by this error because assets are reported on the balance sheet.