Which of the Following Statements Is True

question 38

Multiple Choice

Which of the following statements is true?

• A)Trade discounts and sales returns and allowances are listed on the income statement as deductions from gross sales.
• B)Reports to shareholders often omit the details of revenue and show only net revenue.
• C)Cash Discounts on Sales are listed on the income statement as an expense of doing business.
• D)"Turnover" is commonly used in the United States to refer to net sales revenue.
• E)Cash discounts must appear on cash flow statements.

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Definitions:

Potential Risk

The likelihood of encountering a negative outcome or threat that could impact objectives, operations, or resources.