If sales return is understated, it implies that ------------------------------ is overstated

If sales return is understated, it implies that ------------------------------ is overstated

Answer Details

If sales returns are understated, it implies that the sales figure is overstated. Imagine a scenario where a company reports $100,000 in sales, but in reality, some of those sales were returned by customers. If the company only reports $80,000 in sales returns, then it means the actual amount of sales returns is higher, and therefore, the reported sales figure of $100,000 is overstated. So, if sales returns are understated, it means the sales figure is overstated.