In Preparing Its 2019 Adjusting Entries, Zena Ltd Forgot to Adjust

Multiple Choice

In preparing its 2019 adjusting entries, Zena Ltd forgot to adjust the Office Supplies (asset) account for the amount of supplies used during the year. As a result of this error:

A) 2019 profit is understated, the balance of equity is understated, and assets are understated.
B) 2019 profit is overstated, the balance of equity is correct, and assets are overstated.
C) 2019 profit is overstated, the balance of equity is overstated, and assets are correctly stated.
D) 2019 profit is overstated, the balance of equity is overstated, and assets are overstated.