Unearned Income is classified as a In the balance sheet as, if the income is not earned, it may need to be repald. If an adjustment for depreciation is omitted from the financial reports the affect is: Select one: a. Assets are understated; profit is understated b. Assets are overstated; profit is understated C. Assets are understated; profit is overstated d. Assets are overstated; profit is overstated Thec amount of an asset is its original cost less accumulated depreciation. At year-end it was forgotten to accrue an income item. This will result in an: Select one: a. Understatement of assets and an overstatement of profit and equity b. Overstatement of Liabilities and an understatement of profit and equity O c. Overstatement of assets, profit, and equity d. Understatement of assets, profit, and equity