Generally accepted accounting principles require that revenue be reported net of sales returns and allowances
A) if practical.
B) if required by industry practice.
C) if the amounts are material.
D) any of the above

Question

Quizplus · Accepted Answer

Generally accepted accounting principles require that revenue be reported net of sales returns and allowances if the amounts are material. This means that if the potential for returns or allowances is significant enough to impact the financial statements, revenue must be reported net of these amounts.

Generally Accepted Accounting Principles Require That Revenue Be Reported Net