A trader prepared her financial statements, but she did not make any adjustments for accrued rent receivable at the year end. What effect does this omission have?
- Acurrent assets: no effect; current liabilities: overstated; profit for the year: overstated
- Bcurrent assets: overstated; current liabilities: no effect; profit for the year: understated
- Ccurrent assets: understated; current liabilities: overstated; profit for the year: no effect
- Dcurrent assets: understated; current liabilities: no effect; profit for the year: understated