Southern Company's accountant failed to accrue as of 12/31/16 some employee fringe benefit program expenses that were incurred in 2016 and that will be paid in 2017. The result of this omission is to:

overstate 2016 net income and understate noncurrent liabilities at 12/31/16.

understate 2016 expenses and understate current liabilities at 12/31/16.

understate 2016 expenses and overstate current liabilities at 12/31/16.

understate 2016 net income and overstate assets at 12/31/16.