On a Multiple-Step Income Statement, What Happens to the Amount

question 49

Multiple Choice

On a multiple-step income statement, what happens to the amount of sales returns and allowances?

• A) It is subtracted from net sales to determine gross margin on sales.
• B) It is subtracted from gross sales to determine net sales.
• C) It is added in the calculation of cost of goods sold.
• D) It is subtracted from gross margin on sales to determine net sales.

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Definitions:

Body Mass Index (BMI)

Weight (in kilograms) divided by height (in meters) squared (kg/m2).

Obese

A medical condition characterized by excessive body fat that presents a risk to health, typically defined as a body mass index (BMI) of 30 or higher.

Automobile Fatalities

Deaths resulting from incidents or accidents involving motor vehicles.

Alcohol

a psychoactive substance commonly found in drinks like beer, wine, and spirits, known to alter mood, perception, and behavior when consumed.