Yesterday’s Fashions has a debt that has been properly reported as a long-term liability up to the present year (20X0). Some of this debt comes due in 20X0. If Yesterday’s Fashions continues to report the current position as a long-term liability, the effect will be to

a. overstate net income.

c. overstate the current ratio.

b. understate total liabilities.

d. understate the debt ratio.