27. If a company using accrual accounting fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements? A) Failure to make an adjustment does not affect the financial statements. B) Net income and stockholders' equity will be understated. C) Assets will be overstated and liabilities will be understated. D Assets, net income and stockholders' equity will be overstated
