Failure to Record Amortization Expense on a Patent During the Current

Multiple Choice

Failure to record amortization expense on a patent during the current year will result in which of the following?

A) Net income will be overstated, but there would be no affect on total assets.
B) Net income for the year and total assets would both be overstated.
C) Assets will be overstated, but there would be no affect on net income for the year.
D) Net income and assets will both be understated.