A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true?

Select one:

a. It will have no effect on income.

b. It will overstate assets and liabilities by $9,000

c. It will understate net income by $9,000.

d. It will understate assets by $9,000.

e. It will understate expenses and overstate net income by $9,000.

why