Employee wages affect net income instead of assets, the answer being b instead of d. Why is this?

1. A company forgot to record accrued and unpaid employee wages of $350,000 at period-end. This oversight would: a. Understate net income by $350,000. b. Overstate net income by $350,000. c. Have no effect on net income. d. Overstate assets by $350,000. e. Understate assets by $350,000