If an adjustment for salaries earned but not recorded or paid in the amount of $85,000 were to be omitted, how would this affect the financial statements?

a.Net income would be overstated on the income statement by $85,000.

b.Liabilities would be understated on the balance sheet for $85,000.

c.Expenses would be understated on the income statement by $85,000.

d.All of these effects would occur.