Which of the following is an advantage of using the net price method for recording cash discounts on credit sales?

Question

Quizplus · Accepted Answer

The net price method assumes that discounts will be taken and records sales at the net of discount price, which conservatively reflects sales revenue by not assuming all sales will be made at the full price. This method thus provides a more conservative view of revenue, as it only recognizes the revenue that is expected to be received after discounts.

Which of the Following Is an Advantage of Using the Net