The caption "Net sales" in a multi-step income statement is different if a business uses the periodic instead of the perpetual inventory system.

Question

Quizplus · Accepted Answer

The term "Net sales" in a multi-step income statement refers to the total sales revenue minus returns, allowances, and discounts, and it is not directly affected by the choice between periodic and perpetual inventory systems, as these systems primarily influence how inventory and cost of goods sold are tracked and reported.

The Caption "Net Sales" in a Multi-Step Income Statement Is