The cost of a plant asset was increased for the payment of this year's insurance premium. This error would cause:

A) the period's net income to be overstated.
B) the period's net income to be understated.
C) the period's end assets to be understated.
D) the period's end liabilities to be understated.

Insurance Premium

The amount paid periodically to an insurance company for coverage.

Plant Asset

Long-term tangible assets used in the production of goods or services, such as machinery, buildings, and equipment.

Net Income

The total earnings calculated by subtracting total expenses from total revenues, indicating the company's profit.