Question 1

Chain discounts sometimes may be added together.

Accepted Answer

A) True 
 B)False

Question 2

J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 FOB Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee's pays within the discount period, how much will Lee's pay J.C. Penney?

Accepted Answer

A) $11,640 
B) $8,544 
C) $8,644 
D) $11,940 
E) None of these 
A) $11,640 
B) $8,544 
C) $8,644 
D) $11,940 
E) None of these

Question 3

Net price times rate of trade discount equals amount of trade discount.

Accepted Answer

A) True 
 B)False

Question 4

The single equivalent discount rate of the trade discount 5/4/1 is:

Accepted Answer

A) .09712 
B) .90288 
C) .00002 
D) .99998 
E) None of these 
A) .09712 
B) .90288 
C) .00002 
D) .99998 
E) None of these

Question 5

Trade discounts sometimes are taken on freight.

Accepted Answer

A) True 
 B)False

Question 6

Brooks Brothers bought a suit that has a list price of $1,219, with a chain discount of 7/4/2. What is the net price of the suit?

Accepted Answer

A) $682.64 
B) $1,166.65 
C) $1,066.56 
D) $152.44 
E) None of these 
A) $682.64 
B) $1,166.65 
C) $1,066.56 
D) $152.44 
E) None of these

Question 7

The net price equivalent rate of 3/7/13 is:

Accepted Answer

A) .0273 
B) .784827 
C) .488173 
D) 215173 
E) None of these 
A) .0273 
B) .784827 
C) .488173 
D) 215173 
E) None of these

Question 8

A discount period is always greater than the credit period.

Accepted Answer

A) True 
 B)False

Chain discounts sometimes may be added together.

J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 FOB Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee's pays within the discount period, how much will Lee's pay J.C. Penney?

Net price times rate of trade discount equals amount of trade discount.

The single equivalent discount rate of the trade discount 5/4/1 is:

Trade discounts sometimes are taken on freight.

Brooks Brothers bought a suit that has a list price of $1,219, with a chain discount of 7/4/2. What is the net price of the suit?

The net price equivalent rate of 3/7/13 is:

A discount period is always greater than the credit period.

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Exam 7: Discounts: Trade and Cash

Chain discounts sometimes may be added together.

J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 FOB Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee's pays within the discount period, how much will Lee's pay J.C. Penney?

Net price times rate of trade discount equals amount of trade discount.

The single equivalent discount rate of the trade discount 5/4/1 is:

Trade discounts sometimes are taken on freight.

Brooks Brothers bought a suit that has a list price of $1,219, with a chain discount of 7/4/2. What is the net price of the suit?

The net price equivalent rate of 3/7/13 is:

A discount period is always greater than the credit period.

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Appreciation

Inventory and Overhead

Sales Excise and Property Taxes

Life, Fire and Auto Insurance

Stocks, Bonds and Mutual Funds

Business Statistics

Filters