Practice HW Ending Week 11 Context: You are working for a company called Skyline Parts Technology that is asking you to perform some analysis on some company financials. The company is doing great and you are being asked to perform the following analysis to report back to the CFO! Respond to the following situation. In preparing its Year 1 adjusting entries, the Company neglected to adjust prepaid insurance for the amount of insurance explred during Year 1 . As a result of this error: A. Year 1 net income is understated, the balance in retained eamings is understated, and assets are understated. B. Year 1 net income is overstated, the balance in retained earnings is overstated, and assets are correctly stated. C. Year 1 net income is overstated, the balance in retained eamings is overstated, and assets are overstated. D. All of the above. E. None of the above. Only one correct answerl Please choose the best option