1. If Sierra Products, Inc. failed to account for the use of $24, 120 of prepaid expenses in 2018 a.) Its 2018 reported net profit of $443,706 would be under-stated by $24,120, its prepaid expenses balance would be under-stated by $24,120, and it would have violated the revenue recognition principle b.) Its 2018 reported net profit of $443,706 would be over-stated by $24,120, its prepaid expenses balance would be under-stated by $24,120, and it would have violated the historic cost principle. c) Its 2018 reported net profit of $443,706 would be over-stated by $24,120, its prepaid expenses balance would be over-stated by $24,120, and it would have violated the matching principle d.) None of the above