Use the following information to answer questions 20 and 21. On January 1, 20X1 CleanCo credited Revenue for a $4,000 prepayment it received from a customer for maintenance services to be provided over the next two years. 20. If Revenue is not adjusted as of December 31, 20X1... a. assets will be overstated by $2,000 b. net income will be understated by $2,000 revenues will be overstated by $2,000 d. retained earnings will be understated by $2,000 21. An adjusting entry is necessary as of December 31, 20X1 to properly reflect... a. the ledger Cash account balance b) deferred revenue c. correction of the expense accrual d. accrual of expense Use the following information to answer questions 22-24. On July 1, 20xo, CriCo takes out a 10%, $10,000 note payable that is labai due on July 1, 20X1. No interest is accrued at year-end 20X0. 22. If the error is not discovered until July 1, 20X1... a it will require a prior period adjustment b. it will require a current period adjustment c. it will require both a and b d. it will require no correction 23. If no corrections are made, which of the following statements is correct? a. On CriCo's 20X0 income statement, net income is understated by $500. b) On CriCo's 20X0 income statement, net income is overstated by $500. c. On CriCo's 20X0 balance sheet, retained earnings is understated by $500 d. On CriCo's 20X0 balance sheet, liabilities are overstated by $500