What type of income does 'Net Revenue' affect?

Net Revenue is defined as the amount of money a company makes from its sales after subtracting discounts, allowances, and returns. This means it reflects the actual income a company earns from its operational activities before considering other expenses like administrative costs, marketing expenses, or cost of goods sold.

When considering the options, net income is closely related to the "Income after all deductions related to sales." This highlights how net revenue provides a more accurate picture of the income generated from sales activities, as it removes factors that can inflate the figures, such as returns or sales discounts. Therefore, net revenue ultimately contributes to calculating net income, which is the bottom line figure after all expenses have been deducted from total revenues.

This understanding clarifies why the correct answer focuses on income after deductions, capturing the essence of what net revenue represents in a company's financial statement.