Question: 8 . On March 3 1 2 0 2 3 , Sample Company paid $ 4 , 0 0 0 rent for their cell phone

8. On March 312023, Sample Company paid $4,000 rent for their cell phone site. This payment was recorded as rental expense, covered the period April 1,2022 to March 31,2023. If no adjusting entry was prepared at the end of the fiscal year (July 1 June 30), Sample Companys profit would be:
a. Overstated by $3,000
b. Understated by $3,000
c. Unchanged
d. Understated by $4,000
e. None of the above

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