Chapter 5, Problem 5MCQ

To determine

Gross method:

Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.

Net method:

Under this method, the revenues are recorded at net amount i.e. amount received after considering the discounts on the selling price. This discount is provided with a limited time period to avail such discounts.

To select:

The best time for recording the sales revenue in net method.