Question: Over/Under: Beta failed to record two types of normal AJEs (as described in class): A deferred expense for $1,000 and a deferred revenue for $1,600.

Over/Under: Beta failed to record two types of normal AJEs (as described in class): A deferred expense for $1,000 and a deferred revenue for $1,600. This has what effect on assets, liabilities, and net income?

Assets : Overstated
Liabilities : Overstated
Net Income : Understated

Why is the answer the above?

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