On January 1, 2000 CleanCo credited Revenue for a $4,000 prepayment it received from a customer for maintenance services to be provided over the next two years.

If Revenue is not adjusted as of December 31, 2000:

A) assets will be overstated by $2,000

B) net income will be understated by $2,000

C) revenues will be overstated by $2,000

D) retained earnings will be understated by $2,000