On December 1, Ford Company received three months' rental income in advance and increased a liability account. On December 31, the end of the accounting period, Ford failed to make an adjusting entry reflecting that a portion of this rent had been earned. This error results in:
A) Overstated liabilities
B) Understated assets
C) Overstated assets
D) Overstated revenue
E) None of the above
Correct Answer:
Verified
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