MK Traders financial year ends on $31$ December $2022.$ A tenant rented space in an office building from ABC Traders on $1$ October $2022$ at R$2750$ per month and paid six months rent in advance. The accountant recognised a current liability upon receipt of the R$16500.$ No year$-$end adjustment was recorded. As a consequence of overlooking the required adjustment:

A$.$ Revenue was overstated and liabilities were understated.

B$.$ Revenue was understated and liabilities were understated.

C$.$ Revenue was overstated and liabilities were overstated.

D$.$ Revenue was understated and liabilities were overstated.