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 terms refers to the total revenue from sales after deducting sales returns, allowances, and discounts?

Operating Income

Gross Profit

Accounts Receivable

Net Sales

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Verified step by step guidance

Understand the term 'Net Sales': Net Sales refers to the total revenue generated from sales after deducting any sales returns, allowances, and discounts. It represents the actual revenue a company earns from its sales activities.

Identify the components to calculate Net Sales: These include Total Sales Revenue, Sales Returns, Sales Allowances, and Sales Discounts.

Set up the formula for Net Sales: Net Sales = Total Sales Revenue - Sales Returns - Sales Allowances - Sales Discounts.

Differentiate Net Sales from other terms: Operating Income refers to profit after deducting operating expenses, Gross Profit is the difference between Net Sales and Cost of Goods Sold, and Accounts Receivable represents money owed by customers.

Apply the concept: To determine Net Sales, always subtract the deductions (returns, allowances, and discounts) from the total sales revenue to arrive at the actual revenue earned.