Failure to make an adjusting entry to recognize rent revenue receivable would

cause which of the following?

Multiple Choice

An overstatement of assets and stockholders' equity and

an understatement of net income.

An understatement of assets, net income, and

stockholders' equity.

No effect on assets, liabilities, net income, or

stockholders' equity.

An overstatement of assets, net income, and

stockholders' equity.