As Long as Average Revenue Remains Above Average Total Cost

question 110

Multiple Choice

As long as average revenue remains above average total cost:

• A) total revenue will be higher than total cost.
• B) the firm will be making profits.
• C) price will be greater than average total cost.
• D) All of these are true.

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Definitions:

Sales Journal

A specialized accounting journal used to record all sales transactions of a company on credit.

Accounts Receivable Subsidiary Ledger

A ledger detailing individually the amounts owed by each customer, supplementing the general ledger's summary account.

Posting Frequency

The regularity with which financial transactions are recorded and posted in the accounting system.

Accounts Payable

Liabilities of a business that are due to vendors or suppliers for goods or services received that have not yet been paid for.