Which of the following is a true statement about sales?
A) Net revenue is gross revenue plus sales discounts less sales returns and allowances.
B) Sales discounts are offered to customers in order to speed up cash flow.
C) Sales returns and allowances increase a company's profit.
D) Retailers do not generally record sales returns and allowances in a separate account.
Correct Answer:
Verified
Q29: The two major types of receivables are
Q48: Accounts receivable have a maturity date.
Q49: Sales discounts and sales returns and allowances
Q50: The Accounts Receivable account in the general
Q51: A business offers credit terms of 1/15,
Q52: A company has gross revenue of $400,000;
Q54: ABC Company has shipped goods to one
Q56: If a buyer takes advantage of a
Q57: If the credit terms are 2/10, n/30,
Q58: ABC company sells goods to the XYZ
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents