Which of the following has to be accounted for to arrive at net sales

QUESTION

Which of the following has to be accounted for to arrive at net sales figures for an income statement?

A) refunds to customers
B) owners’ equity
C) cost of goods sold
D) administrative expenses
E) gross profit

ANSWER

Answer: A
Explanation: A) After gross sales, the net sales must be adjusted by accounting for refunds to customers after sales were made, which will be subtracted from gross sales to arrive at net sales.