Sales Returns and Allowances and Sales Discounts Are Subtracted from Sales

question 51

True/False

Sales returns and allowances and sales discounts are subtracted from sales in reporting net sales in the income statement.

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Definitions:

Income Tax Bracket

A range of incomes taxed at a particular rate under a progressive tax system.

Regressive Tax

A levy where the rate diminishes as the taxable amount grows.

Payroll Tax

Fees levied on employers or their employees, customarily figured as a percentage of what staff are paid.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your next dollar of taxable income.