In a multiple-step income statement,sales will be reduced by sales discounts and sales returns and allowances to arrive at net sales.

Question

Quizplus · Accepted Answer

This statement is true. Net sales is calculated by deducting sales discounts and sales returns and allowances from gross sales revenue. This reflects the actual amount of revenue earned by the company from sales after adjustments for discounts and returns.

In a Multiple-Step Income Statement,sales Will Be Reduced by Sales