Wilensky Co. recorded Prepaid Rent when it paid its rent in advance. This prepayment had expired as of the end of the accounting year. If no adjustment is made to record this expiration, which of the following will happen?

Multiple Choice

• Assets and expenses will be understated.

• Assets will be understated and expenses will be overstated.

• Assets will be overstated and expenses will be understated.

• Assets and expenses will be overstated.