On June 30,a Company Paid $3,600 for Insurance Premiums for the Current

Multiple Choice

On June 30,a company paid $3,600 for insurance premiums for the current year and debited the amount to Prepaid Insurance.At December 31,the bookkeeper forgot to record the amount expired.The omission has the following effect on the financial statements prepared December 31:

A) overstates owners' equity.
B) overstates assets.
C) understates net income.
D) overstates both owners' equity and assets.