Which of the following correctly describes the effect of a sales discount?

A) Gross profit increases.
B) Net sales increases.
C) Current assets remain the same.
D) Net income decreases.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the profitability of selling goods and services.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.