Which of the following statements explains why the reported amount of net assets is probably understated?

Group of answer choices

The realisable value of most assets probably equals their carrying amounts.

The entity could probably be sold for a price equal to the reported net assets.

There are probably some items that satisfy the definition of an asset, but fail the recognition criteria.

Preparers tend to err on the side of understating the carrying amounts of some liabilities.

All of these statements explain why the reported amount of net assets is probably understated.