The income statement shows net sales which is equal to
A)net sales minus cost of goods sold.
B)earnings before taxes minus taxes.
C)gross revenues minus returns and allowances.
D)operating income minus interest.
E)operating income minus operating expenses.

Question

Quizplus · Accepted Answer

Net sales on the income statement is typically calculated as gross revenues minus returns and allowances. This is because returns and allowances represent reductions in revenue and are deducted from gross revenues to arrive at net sales. Therefore, choice C is the correct answer.

The Income Statement Shows Net Sales Which Is Equal to