Southern Company's Accountant Failed to Accrue as of 12/31/16 Some

Multiple Choice

Southern Company's accountant failed to accrue as of 12/31/16 some employee fringe benefit program expenses that were incurred in 2016 and that will be paid in 2017. The result of this omission is to:

A) overstate the current ratio at 12/31/16 and overstate ROI and ROE for the year ended 12/31/16.
B) overstate the current ratio at 12/31/16 and understate ROI and ROE for the year ended 12/31/16.
C) understate the current ratio at 12/31/16 and understate ROI and ROE for the year ended 12/31/16.
D) not affect the current ratio at 12/31/16 but to overstate ROI and ROE for the year ended 12/31/16.