On September 1, 2021, a company lends $50,000 to a customer with 10% interest. The note and interest are due in twelve months. The note receivable is recorded for $50,000 on September 1, but no other adjustments are made in 2021. At the end of 2021, which of the following is true?

A) Assets are overstated.

B) Revenues are understated.

C) Expenses are understated.

D) All amounts are accurately stated.

Answer: Revenues are understated.