Question: On September 1 , 2 0 X 8 , your calendar year company pays $ 2 , 4 0 0 for 1 2 monthsinsurance, recording

On September 1,20X8, your calendar year company pays $2,400 for 12 monthsinsurance, recording the amount as an asset. Just before closing the books, you realize thatno adjusting entry was recorded. Without it:a. net income will be overstatedb. assets will be understatedc. liabilities will be overstatedd. none of the above

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