Answer:
There will be an overstatement in income and an overstatement in current assets
Step-by-step explanation:
In case an accountant forgets to adjust the prepaid expenses account for the period, the recognized expenses is understated because to adjust prepaid expenses we have to debit expenses (which will lead to an increase in recognized expenses) and credit prepaid expense account (a deduction to current asset). Failure to do so, income recognized for the period is overstated and prepaid expenses account is overstated as well.