Which of the following is correct?
A. If a company fails to record depreciation expense, net income and expenses are overstated.
B. If a company fails to record depreciation expense, stockholders' equity, net income, and assets are understated.
C. If a company overstates depreciation expense, net income is overstated and assets are understated.
D. If a company fails to record depreciation expense, net income and assets are overstated.