Question: Southern Company's accountant failed to accrue as of 12/31/03 some employee fringe benefit program expenses that were incurred in 2003 and that will be paid in 2004. The result of this omission is to:
- overstate 2003 net income and understate long-term liabilities at 12/31/03.
- understate 2003 expenses and current liabilities at 12/31/03.
- understate 2003 expenses and overstate current liabilities at 12/31/03.
- understate 2003 net income and overstate assets at 12/31/03.