10. The following information about the office supplies account was taken from the records of Walters Corp:- On-hand at start of month $2,300 On-hand at end of month $2,750 Supplies purchased during month $800 Walters always pays cash to purchase its supplies. If Walters applies the cash basis of accounting -- rather than the accrual basis -- to account for its supplies expense, which of the following will occur? a. net income will be understated b. total sales will be overstated c. liabilities will be understated d. cash will be understated