Sales Revenue Minus Sales Returns and Allowances and Sales Discounts

question 147

Multiple Choice

Sales revenue minus sales returns and allowances and sales discounts equals:

• A)gross margin.
• B)income from operations.
• C)cost of goods sold.
• D)net sales.

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Definitions:

Nominal Interest

The rate of interest before adjustments for inflation, as opposed to real interest rates which are adjusted.

Effective Rate

The actual annual interest rate that is earned or paid on an investment, taking compounding into account.

Compounding Interval

The frequency with which interest is added to the principal balance of an investment.

Monthly Compounded

Monthly compounded refers to the process of calculating interest on a principal amount where the interest is added to the principal at the end of each month, thereby earning interest on interest in subsequent months.