On October 31, before Wachowski Industries prepared their month end adjusting entries, they had $60,000 in revenue for October that had NOT been billed, and were waiting for invoices for expenses incurred totaling $48,000. Before any accounts were adjusted, Wachowski Industries would be showing

Select answer from the options below

understated assets of $60,000.

overstated liabilities of $48,000.

understated profit of $60,000.

overstated profit of $12,000.