The Pieper Corp. recorded the accrual of an expense by debiting Prepaid Expense and crediting Accounts Payable. Indicate the effect of the error on Assets, Liabilities, and Net Income, respectively:

Select one:

a.

Understated, Understated, No Error

b.

Overstated, No Error, Overstated

c.

Understated, No Error, Overstated

d.

Overstated, Understated, No Error

e.

Understated, Understated, Understated