객관식
Todrick Company is a merchandiser that reported the following amounts for the year: Sales revenue of \$500,000, sales returns and allowances of \$20,000, and sales discounts of \$5,000. What is the company's net sales for the year?
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4. Merchandising Operations
Net Sales
Multiple Choice
Net operating income is income before which of the following deductions?
A
Interest and income taxes
B
Cost of goods sold and depreciation
C
Dividends and extraordinary items
D
Sales returns and allowances
검증된 단계별 안내1
Understand the concept of Net Operating Income (NOI): Net Operating Income is a measure of a company's profitability from its core operations, excluding non-operating expenses such as interest and income taxes.
Identify the deductions excluded from NOI: NOI is calculated before deducting interest expenses and income taxes, as these are considered non-operating items. It focuses solely on operational performance.
Review the options provided: Analyze each option to determine which deductions are excluded from NOI. For example, 'Interest and income taxes' are non-operating expenses, while 'Cost of goods sold and depreciation' are operating expenses.
Eliminate incorrect options: Exclude options that include deductions not related to non-operating expenses, such as 'Dividends and extraordinary items' or 'Sales returns and allowances,' which are unrelated to NOI calculation.
Select the correct answer: Based on the definition and exclusions of NOI, choose the option that correctly identifies deductions excluded from NOI, which is 'Interest and income taxes.'
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