Agriculture Co paid $3,000 for 6 months of prepaid insurance on November 1, 2020. At December 31, 2020, the Co forgot to prepare the required adjustment with regard to this account. Because of this error

A. both net income and total assets are overstated.

B. retained earnings is understated and stockholders' equity is overstated.

C. stockholders' equity is understated and total assets are overstated.

D. both total assets and expenses are overstated.

E. both total assets and stockholders' equity are understated.