Multiple Choice
Net income is also called your _________.
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4. Merchandising Operations
Net Sales
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following terms refers to your total pay before taxes and withholdings are taken out?
A
Operating Income
B
Net Income
C
Net Sales
D
Gross Sales
Verified step by step guidance1
Understand the concept of Gross Sales: Gross Sales refers to the total revenue generated from sales before any deductions such as taxes, discounts, or returns are applied.
Compare Gross Sales with other terms: Operating Income refers to the profit generated from core business operations, Net Income is the profit after all expenses, taxes, and deductions, and Net Sales is the revenue after deducting returns, allowances, and discounts.
Identify the key characteristic of Gross Sales: It represents the total pay or revenue before any deductions, which aligns with the description in the question.
Eliminate incorrect options: Operating Income, Net Income, and Net Sales involve deductions or adjustments, making them unsuitable for describing total pay before taxes and withholdings.
Conclude that Gross Sales is the correct term: Based on the definition and comparison, Gross Sales accurately represents total pay before deductions.
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