Multiple Choice
Net revenues (net sales) is calculated as total revenues minus which of the following items?
23
views
4. Merchandising Operations
Net Sales
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
When Molly adds all of her payments received from customers, which financial figure is she most likely calculating?
A
Operating Expenses
B
Net Sales
C
Gross Sales
D
Net Income
Verified step by step guidance1
Understand the context: Payments received from customers typically refer to revenue generated from sales of goods or services.
Review the options provided: Operating Expenses, Net Sales, Gross Sales, and Net Income. Each term has a specific meaning in financial accounting.
Clarify the term 'Gross Sales': This represents the total sales revenue before any deductions such as returns, allowances, or discounts.
Clarify the term 'Net Sales': This is calculated by subtracting returns, allowances, and discounts from Gross Sales. It represents the actual revenue earned from customers.
Determine the most relevant term: Since Molly is adding payments received from customers, she is most likely calculating Net Sales, as this figure reflects the actual revenue after adjustments.
9:04mWatch next
Master Net Sales:Sales Discounts (Gross Method) with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
