Failure to make a necessary adjusting entry for accrued interest on a note payable would result in which of the following?

A.) Net income would be overstated and assets would be understated.

B.) Net income would be understated and liabilities would be understated.

C.) Liabilities and stockholders' equity would both be understated.

D.) Net income and stockholders' equity would be overstated and liabilities would be understated.