$4\mathrm{.}3$ Adjustments for Accruals

Suppose that a company did not make an adjustment to record revenue for services performed but not yet billed to customers. The

result of this error would be to$.$

overstate liabilities and understate stockholders' equity.

overstate net income and understate assets.

overstate assets and net income.

understate assets, net income, and stockholders' equity.