Question: During the adjusting process two transactions were missed. The first is for unearned rent revenue of which $450 was earned during the period, the second

During the adjusting process two transactions were missed. The first is for unearned rent revenue of which $450 was earned during the period, the second was for accrued interest payable of which $275 is owed for the period. As a result of these omissions

revenue is overstated by $725.

net income is understated by $175.

liabilities are overstated by $725.

assets are overstated by $725.

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