Which of the following is not a member of an ecological communityA corporation purchased a one-year insurance policy on March 1 of the current year for $30,000. The insurance policy will be in effect from March 1 through February 28 of the next year. The company recorded the payment as prepaid Insurance. The company neglects to record the year-end adjusting entry at the end of the current year. As a result, the company’s current year



Group of answer choices

net income and assets will be understated by $25,000.

net income and assets will be understated by $5,000.

net income and assets will be overstated by $5,000.

net income and assets will be overstated by $25,000.

neither net income nor assets will be overstated or understated.