Which of the following is included in the calculation of net sales?

Net sales represent the actual revenue generated from sales after deducting returns, allowances, and discounts. The calculation of net sales starts with total revenue, which encompasses all income generated from the sale of goods and services. From this figure, any sales returns, allowances for damaged or unsold goods, and discounts given to customers are subtracted to arrive at net sales.

While cost of goods sold, operational expenses, and total liabilities are important financial metrics in assessing the overall profitability and financial health of a business, they are not factored into the calculation of net sales. Instead, they relate to different stages of financial reporting and analysis, such as calculating gross profit or net income. Therefore, total revenue is the correct choice, as it is the foundational figure from which net sales are derived.