Question

question 5 (3 points)
net purchases + purchases returns and allowances + purchase discounts equals:
net loss.
net income.
gross profit.
gross purchases.
question 6 (3 points)
net income equals:
net sales - cost of goods sold - operating expenses.
gross profit - operating expenses.
sales - sales returns & allowances - sales discounts - cost of goods sold - operating expenses.
all of these are correct.

Explanation:

For Question 5, the formula Net Purchases = Gross Purchases - Purchases Returns and Allowances - Purchase Discounts, so when we rearrange it, Net Purchases + Purchases Returns and Allowances + Purchase Discounts = Gross Purchases.
For Question 6, Net Income can be calculated as Net Sales - Cost of Goods Sold - Operating Expenses. Also, since Gross Profit = Net Sales - Cost of Goods Sold, Net Income = Gross Profit - Operating Expenses. And Sales - Sales Returns & Allowances - Sales Discounts is Net Sales, so Sales - Sales Returns & Allowances - Sales Discounts - Cost of Goods Sold - Operating Expenses is also Net Income.

Answer:

Question 5: Gross Purchases.
Question 6: All of these are correct.