Net sales is equal to sales minus cost of merchandise sold.

Question

Quizplus · Accepted Answer

Net sales is equal to sales minus any deductions such as returns, discounts, or allowances. Cost of merchandise sold refers to the expenses related to the production of goods sold, not a deduction from sales. Therefore, net sales is not equal to sales minus cost of merchandise sold, but rather it is calculated by deducting any deductions or returns from the total amount of sales.

Net Sales Is Equal to Sales Minus Cost of Merchandise