Final answer:
Net revenue is gross revenue minus discounts and returns, representing a more accurate measure of a company's actual income from sales after accounting for these deductions.
Step-by-step explanation:
The term net revenue is best defined as option C. Net revenue is calculated as gross revenue minus any discounts and returns that a company may provide or receive. This figure provides a more accurate reflection of the actual income a company earns from selling its products or services. To calculate total revenue, we typically multiply the price of the product by the quantity sold. However, net revenue takes this a step further by accounting for the reductions in revenue that result from discounts and returns.
For example, if a company sells 100 units of a product at $10 each, the total revenue would be $1,000. But if the company had to provide discounts amounting to $100 and accept returns equivalent to $ 50 worth of product, the net revenue would be $850.