Which of the Following Is True of Net Sales Revenue

question 36

Multiple Choice

Which of the following is true of net sales revenue?

• A)It is calculated by subtracting cost of goods sold from sales.
• B)It is calculated by adding sales discounts to sales.
• C)It is calculated by adding sales discounts and sales returns and allowances to sales.
• D)It is calculated by deducting sales discounts and sales returns and allowances from sales.

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Definitions:

Interest Rates

The cost of borrowing money expressed as a percentage of the loan amount, typically noted on an annual basis.

Business Investment

The allocation of resources by businesses into areas with the expectation of earning future returns, such as buying new equipment or expanding operations.

Consumer Durable Expenditures

Spending by consumers on long-lasting goods (durables) such as cars, appliances, and furniture that are expected to be used for several years.

Abnormal Returns

Returns on a security or portfolio that differ significantly from the expected rate of return, often resulting from specific events.