On December 31, 2017, the Bookkeeper at Thrush Corp

question 12

Short Answer

On December 31, 2017, the bookkeeper at Thrush Corp.did not record special insurance costs that had been incurred (but not yet paid), related to a building that Thrush Corp.is constructing.What is the effect of the omission on accrued liabilities and retained earnings in the December 31, 2017 statement of financial position?

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Definitions:

Variable Inputs

Resources or factors of production whose quantity can be changed in the short term to influence output.

Fixed

Fixed typically refers to costs or assets that do not change in the short term, regardless of the level of output or activity.

Short Run

A period in economic analysis during which at least one input is fixed, limiting the ability of firms to adjust to changes in market conditions.

Marginal Product

The growth in production resulting from one more unit of input, while keeping all other inputs the same.