Question 1

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 2

An invoice dated 5/19/xx received by Jones Supply indicated a balance of $17,000. This balance included a freight charge of $1,000. Terms of the bill were 5/10, 4/30, n/60. Assuming Jones pays off the bill on June 4, he pays:

Accepted Answer

A)  $16,762.27 
B)  $16,000.55 
C)  $15,762.72 
D)  $16,000.84 
E)  None of these 
A)  $16,762.27 
B)  $16,000.55 
C)  $15,762.72 
D)  $16,000.84 
E)  None of these

Question 3

A single equivalent discount rate of .45975 means the buyer saves approximately 46 cents per $1 of list price.

Accepted Answer

A) True 
 B)False

Question 4

Calculate the net price based on the information given below.

Accepted Answer

@#IMG-DLM& $450
$600

Question 5

The trade discount results if the customer pays the bill within the discount period.

Accepted Answer

A) True 
 B)False

Question 6

Amount of trade discount equals:

Accepted Answer

A)  List price × trade discount rate 
B)  List price + trade discount rate 
C)  List price divided by trade discount rate 
D)  Net price × trade discount rate 
E)  None of these 
A)  List price × trade discount rate 
B)  List price + trade discount rate 
C)  List price divided by trade discount rate 
D)  Net price × trade discount rate 
E)  None of these

Question 7

Brenda purchased a total of five computers for $3,300. She received a 20% trade discount. What did Brenda pay for the computers?

Accepted Answer

A)  $2,640 
B)  $2,460 
C)  $2,440 
D)  $3,750 
E)  None of these 
A)  $2,640 
B)  $2,460 
C)  $2,440 
D)  $3,750 
E)  None of these

Question 8

The actual credit one receives in making a partial payment is calculated by taking the partial payment and dividing by (1 + the discount rate).

Accepted Answer

A) True 
 B)False

Question 9

A chain discount is a series of three or more successive discounts.

Accepted Answer

A) True 
 B)False

Question 10

Which option yields the highest single equivalent discount?

Accepted Answer

The answer of Which option yields the highest single equivalent...

Question 11

60 days from Nov. 19 is:

Accepted Answer

A)  Jan. 16 
B)  Jan. 17 
C)  Jan. 18 
D)  Jan. 19 
E)  None of these 
A)  Jan. 16 
B)  Jan. 17 
C)  Jan. 18 
D)  Jan. 19 
E)  None of these

Question 12

List price × trade discount rate = amount of trade discount.

Accepted Answer

A) True 
 B)False

Question 13

2/10, EOM means the credit period ends 20 days after the end of the discount period.

Accepted Answer

A) True 
 B)False

Question 14

A cash discount is a reduction from the gross amount of the invoice if payment is made within the discount period.

Accepted Answer

A) True 
 B)False

Question 15

An invoice dated March 6 with terms of 1/10, EOM results in the end of the discount period on:

Accepted Answer

A)  May 10 
B)  April 10 
C)  May 30 
D)  May 31 
E)  None of these 
A)  May 10 
B)  April 10 
C)  May 30 
D)  May 31 
E)  None of these

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The credit period is:

Accepted Answer

A)  Always shorter than the discount period 
B)  Always 30 days from end of discount 
C)  Always twice the length of discount period 
D)  Long enough so buyers can always take a cash discount 
E)  None of these 
A)  Always shorter than the discount period 
B)  Always 30 days from end of discount 
C)  Always twice the length of discount period 
D)  Long enough so buyers can always take a cash discount 
E)  None of these

Question 19

Sellers' catalogs list only the net price.

Accepted Answer

A) True 
 B)False

Question 20

2/10, n/30 is an example of the ordinary dating method.

Accepted Answer

A) True 
 B)False

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

An invoice dated 5/19/xx received by Jones Supply indicated a balance of $17,000. This balance included a freight charge of $1,000. Terms of the bill were 5/10, 4/30, n/60. Assuming Jones pays off the bill on June 4, he pays:

A single equivalent discount rate of .45975 means the buyer saves approximately 46 cents per $1 of list price.

Calculate the net price based on the information given below.

The trade discount results if the customer pays the bill within the discount period.

Amount of trade discount equals:

Brenda purchased a total of five computers for $3,300. She received a 20% trade discount. What did Brenda pay for the computers?

The actual credit one receives in making a partial payment is calculated by taking the partial payment and dividing by (1 + the discount rate).

A chain discount is a series of three or more successive discounts.

Which option yields the highest single equivalent discount?

60 days from Nov. 19 is:

List price × trade discount rate = amount of trade discount.

2/10, EOM means the credit period ends 20 days after the end of the discount period.

A cash discount is a reduction from the gross amount of the invoice if payment is made within the discount period.

An invoice dated March 6 with terms of 1/10, EOM results in the end of the discount period on:

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

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

The credit period is:

Sellers' catalogs list only the net price.

2/10, n/30 is an example of the ordinary dating method.

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

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Banking

Solving for the Unknown: a How-To Approach for 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

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

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Exam 7: Discounts: Trade and Cash

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

An invoice dated 5/19/xx received by Jones Supply indicated a balance of $17,000. This balance included a freight charge of $1,000. Terms of the bill were 5/10, 4/30, n/60. Assuming Jones pays off the bill on June 4, he pays:

A single equivalent discount rate of .45975 means the buyer saves approximately 46 cents per $1 of list price.

Calculate the net price based on the information given below.

The trade discount results if the customer pays the bill within the discount period.

Amount of trade discount equals:

Brenda purchased a total of five computers for $3,300. She received a 20% trade discount. What did Brenda pay for the computers?

The actual credit one receives in making a partial payment is calculated by taking the partial payment and dividing by (1 + the discount rate).

A chain discount is a series of three or more successive discounts.

Which option yields the highest single equivalent discount?

60 days from Nov. 19 is:

List price × trade discount rate = amount of trade discount.

2/10, EOM means the credit period ends 20 days after the end of the discount period.

A cash discount is a reduction from the gross amount of the invoice if payment is made within the discount period.

An invoice dated March 6 with terms of 1/10, EOM results in the end of the discount period on:

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

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

The credit period is:

Sellers' catalogs list only the net price.

2/10, n/30 is an example of the ordinary dating method.

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for 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

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters