What does net sales mean on the CPA exam?
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Net sales. Gross sales less returns, allowances and discounts. The revenue figure ratios are built on.
Related terms
- taxable income: The figure the tax rates are applied to: gross income, less the deductions the Code allows.
- net income: What is left after every revenue and expense of the period, including tax and discontinued operations.
- days sales outstanding: How long on average it takes to collect a receivable, measured as receivables divided by credit sales per day.
- California Consumer Privacy Act: California's consumer privacy statute, as amended by the CPRA.
- net profit margin: Net income divided by sales.
- total asset turnover: Sales divided by average total assets.