If the adjusting entry to accrue interest of $1,000 on a note receivable is omitted, then: Multiple Choice liabilities are understated by $1,000, net income is overstated by $1000, and stockholder O assets are overstated, net income is understated, and stockholders' equity is understates assets, net Income, and stockholders' equity are understated by $1,000. assets, net income, and stockholders' equity are overstated by $1,000.