Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

Which of the following helps companies in setting the appropriate size of their sales force when calculating net sales?

Depreciation expense

Forecasted net sales revenue

Inventory turnover ratio

Total assets

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Verified step by step guidance

Understand the concept of net sales revenue: Net sales revenue is the total revenue generated from sales after deducting returns, allowances, and discounts. It is a key metric for assessing a company's performance and planning its operations.

Recognize the importance of forecasting: Forecasted net sales revenue is an estimate of future sales based on historical data, market trends, and other factors. It helps companies plan resources, including the size of their sales force, to meet expected demand.

Analyze why depreciation expense is not relevant: Depreciation expense relates to the allocation of the cost of tangible assets over their useful life. It does not directly impact the calculation of net sales or the size of the sales force.

Understand why inventory turnover ratio is not applicable: Inventory turnover ratio measures how efficiently a company sells and replaces its inventory. While it is useful for inventory management, it does not directly help in determining the size of the sales force.

Explain why total assets are not directly related: Total assets represent the resources owned by a company. While they are important for financial analysis, they do not provide specific insights into sales forecasting or sales force planning.