PRC-1 · Chapter 1 · Question 79 of 100
During the year, 'Neon Retailers' recorded gross sales of Rs. 850,000. Customers returned damaged goods worth Rs. 25,000, and the business allowed early settlement discounts of Rs. 15,000. What is the value of 'Net Sales'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 810,000
Explanation
Net sales are calculated as Gross Sales minus Sales Returns minus Discounts Allowed. Rs. 850,000 - Rs. 25,000 - Rs. 15,000 = Rs. 810,000.
More Accounting Basics MCQs
- Q81If 'Dynamic Electronics' sells a batch of laptops to a walk-in customer for immediate physical cash, what is the correct double-entry to…
- Q82Which of the following transactions undertaken by a manufacturing company is a clear example of 'Revenue Expenditure'?
- Q83Commercial banks and other long-term lenders analyze a company's financial statements primarily to assess which specific factor?
- Q84The owner of 'Style Boutiques' pays her personal home electricity bill using her own personal cash from her private wallet. How should…
- Q85In financial analysis, the term 'Net Current Assets' (often referred to as Working Capital) is calculated by which of the following…