Please Explain also:

1. Which of the following is not one of the four types of adjustments?

1. Prepaid revenue
2. Accrued expenses
3. Unearned revenue
4. Prepaid expenses

2. In September 20X3, LaToya Corporation paid for insurance for the next six months in the amount of $42,000. On December 31, LaToyas accountant forgot to make the adjusting entry that was needed. Which of the following is true?

1. Assets are understated by $42,000.
2. Net income is understated by $14,000.
3. Expenses are overstated by $42,000.
4. Net income is overstated by $28,000.