Home › SAICA CA(SA) › Accounting › Merchandising Transactions › Taking discounts, returns and allowances off tha…
Taking discounts, returns and allowances off that figure produces:
ANoted sales
BNet sales
CNew sales
DNamed sales
Answer & Solution
Correct answer: B. Net sales
1. The reductions are gathered in their own accounts.
2. Subtracting them leaves the true revenue.
3. That result is net sales.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
Related questions
A statement combining all revenues into one category and all expenses into another is:Advertising and office supplies costs, not tied to direct selling, are called:An income statement listing each revenue and expense account separately is called:Under FOB shipping point terms, the shipping charges are paid by the:Under FOB destination terms, the shipping charges are paid by the:On the choice between those two systems, accounting standards state a requirement that is:An inventory system updating the account only at scheduled times is:An inventory system updating the account on every single sale or purchase is: