If a company neglects to make an adjusting entry to record accrued interest expense, which of the following statements is true?

Select one:

a. Net Income will be understated.

b. Liabilities will be understated, and Stockholders Equity and Income from Operations will be overstated.

c. Assets will be understated and Stockholders Equity will be understated.

d. Liabilities will be understated and Stockholders Equity will be overstated.

e. Income from Operations will be overstated.