An Effective Way to Identify Liabilities That Were Unrecorded at Year-End

question 2

Multiple Choice

An effective way to identify liabilities that were unrecorded at year-end is

• A)reviewing liabilities recorded after year-end
• B)reviewing journal entries after year-end
• C)reviewing account closings after year-end
• D)reviewing the bills paid after year-end

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Definitions:

Marginal Costs

The cost of producing one additional unit of a good or service, reflecting the change in total cost that comes from a one unit increase in output.

Marginal Benefits

The additional benefit received from consuming or producing one more unit of a good or service.

Production

The process of combining various material inputs and immaterial inputs (plans, knowledge) to make something for consumption (the output).

Marginal Cost

The production cost for one more unit of a product.