Net Purchases + Purchases Returns and Allowances + Purchase Discount equals:
A)Net Loss.
B)Net Income.
C)Gross Profit.
D)Gross Purchases.

Question

Quizplus · Accepted Answer

The equation given in the question is: Net Purchases + Purchases Returns and Allowances + Purchase Discount = Gross Purchases. This means that the total amount spent on purchasing goods is calculated by adding the net purchases with any returns/allowances and subtracting any discounts. Therefore, the correct answer is D) Gross Purchases.