Generally, the revenue account for a merchandising company is called
A)Sales Revenue or Sales.
B)Investment Revenue.
C)Gross Profit.
D)Net Sales.

Question

Quizplus · Accepted Answer

Sales Revenue or Sales is the most common name for the revenue account for a merchandising company. This account records the total amount of sales made during a particular period. Option B, Investment Revenue, refers to the revenue earned from the company's investments, while option C, Gross Profit, is the difference between net sales and the cost of goods sold. Option D, Net Sales, refers to sales revenue less any sales returns and allowances, discounts, and other adjustments. While Net Sales is important for calculating profitability, it is not the name commonly used for the revenue account.

Generally, the Revenue Account for a Merchandising Company Is Called