QS 3-17 Linking adjustments to financial statements L05 For each type of adjustment in (a) through (e), indicate the effect on profit (overstated or understated) if the adjustment is not recorded. If adjustment is not recorded: Profit will be Assets will be Liabilities will be overstated, understated, overstated, understated, overstated, understated, or no effect or no effect or no effect Equity will be overstated, understated, or me effect Type of Adjustment a. Prepaid Expenses b. Depreciation c. Unearned Revenues d. Accrued Expenses e. Accrued Revenues