Question: The difference between the gross method and net method of recording sales revenue, in terms of the effect on income is what? Multiple choice question.

The difference between the gross method and net method of recording sales revenue, in terms of the effect on income is what?
Multiple choice question.
There is no difference.
The timing of the recognition of any discounts not taken varies and could occur in different reporting periods.
The gross method results in a greater sales value resulting in a greater net sales revenue value.
The net method results in a smaller sales value resulting in a smaller net sales revenue value.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Brief Exercise 175 Brief Exercise 175Selected transactions for the Hamiltion Company are listed below. Classify each transaction as either an operating activity, an investing activity, a financing...

Q:

Brief Exercise 175 Brief Exercise 175Selected transactions for the Hamiltion Company are listed below. Classify each transaction as either an operating activity, an investing activity, a financing...

Q:

Brief Exercise 175 Brief Exercise 175Selected transactions for the Hamiltion Company are listed below. Classify each transaction as either an operating activity, an investing activity, a financing...

Q:

What is the difference between the gross method and net method for accounting for sales discounts? Is one of these two methods required by GAAP? In the end, how does the choice to use the gross...

Q:

1) 1) Goods in transit are automatically included in inventory regardless of whether title has passed to the buyer. A) True B) False 2) 2) An advantage of FIFO is that it assigns the most recent...

Q:

1. (Points: 1) With respect to a corporation, select the statement that is correct. a. Its organization requires an approved charter which is governed by state law. b. Ownership rights to the...

Q:

Mendez Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 6.00 Variable cost per unit 1.50 Total fixed costs 125,000 What is the...

Q:

Mendez Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 6.00 Variable cost per unit 1.50 Total fixed costs 125,000 What is the...

Q:

Multiple Choice Question 137 Financial information is presented below: Operating Expenses Sales Returns and Allowances Sales Discounts Sales Revenue Cost of Goods Sold $ 91500 18900 11300 320600...

Q:

QUESTION 1 Which of the following would not be an example of a business which is primarily a merchandiser? O a. Target b. Amazon Oc Walmart d. General Motors QUESTION 2 Which of the following is a...

Q:

If the posterior function is B(n +3, x;+2), then Bay's estimate for 0= n+3 j = 1 n+ 2x;+5 j = 1 Select one: O True O False

Q:

A company has computed an indirect allocation rate of 50% based on direct wages for a quality control department, and an 80% allocation rate (based also on direct wages) to cover indirect costs in...

Q:

What does it mean to have stock and debt fixed?Why isn't cash considered a current asset here? Isn't having cash a good thing?!

Q:

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....