At Year-End, It Was Forgotten to Adjust the Asset Prepaid

Multiple Choice

At year-end, it was forgotten to adjust the asset prepaid rent for the $7,000 rent expense used-up during the year. This will result in an:

A) understatement of assets and an overstatement of profit and equity.
B) understatement of assets, profit, and equity.
C) overstatement of liabilities and an understatement of profit and equity.
D) overstatement of assets, profit, and equity.