Which of the following reflect the impact of the unearned revenue account prior to the adjustment made to recognize revenue earned during the current period?

Select one:

A. Balance sheet accounts are overstated and income statement accounts are understated

B. Balance sheet accounts are understated and income statement accounts are overstated

C. Balance sheet accounts are overstated and income statement accounts are overstated

D. Balance sheet accounts are understated and income statement accounts are understated