Suppose the Extra Cost for an Orthodontist to Keep His

question 47

True/False

Suppose the extra cost for an orthodontist to keep his office open for one extra hour is $300. Then, the orthodontist should stay open for the extra hour if he can generate additional revenue of $300 for that hour.

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Definitions:

General Ledger

A complete record of a company's financial transactions over the lifespan of the organization, serving as the foundation of its financial reporting.

Expenses Account

An accounting ledger that reflects the costs incurred by a business in the process of earning revenue.

Revenue Account

A record that monitors the revenue a firm produces through its regular business activities.

Trial Balance

A financial report that lists all the accounts with their balances at a specific date, used to verify the equality of debits and credits in the bookkeeping system.