Question 1

Which of the following is usually not true about customer catalogs?

Accepted Answer

A)  Contain list price 
B)  Completely updated once a year with a new revised catalog 
C)  Updated by discount sheets 
D)  Trade discount amounts will differ from product to product 
E)  None of these 
A)  Contain list price 
B)  Completely updated once a year with a new revised catalog 
C)  Updated by discount sheets 
D)  Trade discount amounts will differ from product to product 
E)  None of these B

Question 2

If the net price of a stove is $900 and the trade discount rate is 40%, the list price is:

Accepted Answer

A)  $3,600 
B)  $2,250 
C)  $1,500 
D)  $1,260 
E)  None of these 
A)  $3,600 
B)  $2,250 
C)  $1,500 
D)  $1,260 
E)  None of these C

Question 3

The single equivalent discount rate of 9/5/4 is .17008.

Accepted Answer

A) True 
 B)False  True

Question 4

Amount of trade discount is represented by the:

Accepted Answer

A)  Base 
B)  Rate 
C)  Portion 
D)  Base divided by rate 
E)  None of these 
A)  Base 
B)  Rate 
C)  Portion 
D)  Base divided by rate 
E)  None of these

Question 5

FOB shipping point means the seller pays cost of freight.

Accepted Answer

A) True 
 B)False

Question 6

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 7

2/10, n/30 means the credit period is 30 days from the end of the discount period.

Accepted Answer

A) True 
 B)False

Question 8

50 days from July 9 is August 28.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which option yields the highest single equivalent discount?

Accepted Answer

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

Question 11

Calculate the net price and amount of trade discount (use net price equivalent rate as well as single equivalent discount rate):

Accepted Answer

The answer of Calculate the net price and amount of...

Question 12

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 13

An invoice for office furniture for $1,210.88 with terms of 2/10, n/60 is dated October 3.
(A) What is the last date on which the cash discount may be taken?
(B) If paid within discount period, how much is the cash discount?
(C) If the discount is missed, on what day does the credit period end?

Accepted Answer

A. Oct.13;

Question 14

A discount period is always greater than the credit period.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A cash discount sometimes is taken on the amount of trade discount.

Accepted Answer

A) True 
 B)False

Question 17

Roland Corporation buys stoves from a wholesaler. The list price of a stove is $900, with a trade discount of 30%. The net price is:

Accepted Answer

A)  $270 
B)  $1,170 
C)  $630 
D)  $360 
E)  None of these 
A)  $270 
B)  $1,170 
C)  $630 
D)  $360 
E)  None of these

Question 18

The net price equivalent rate of 10/20/5 is .684.

Accepted Answer

A) True 
 B)False

Question 19

Accepted Answer

$585
$900

Question 20

A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was:

Accepted Answer

A)  $15,000 
B)  $15,500 
C)  $15,625 
D)  $2,500 
E)  None of these 
A)  $15,000 
B)  $15,500 
C)  $15,625 
D)  $2,500 
E)  None of these

Which of the following is usually not true about customer catalogs?

If the net price of a stove is $900 and the trade discount rate is 40%, the list price is:

The single equivalent discount rate of 9/5/4 is .17008.

Amount of trade discount is represented by the:

FOB shipping point means the seller pays cost of freight.

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

2/10, n/30 means the credit period is 30 days from the end of the discount period.

50 days from July 9 is August 28.

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

Which option yields the highest single equivalent discount?

Calculate the net price and amount of trade discount (use net price equivalent rate as well as single equivalent discount rate):

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

An invoice for office furniture for $1,210.88 with terms of 2/10, n/60 is dated October 3. (A) What is the last date on which the cash discount may be taken? (B) If paid within discount period, how much is the cash discount? (C) If the discount is missed, on what day does the credit period end?

A discount period is always greater than the credit period.

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

A cash discount sometimes is taken on the amount of trade discount.

Roland Corporation buys stoves from a wholesaler. The list price of a stove is $900, with a trade discount of 30%. The net price is:

The net price equivalent rate of 10/20/5 is .684.

A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was:

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Exam 11: Discounts: Trade and Cash

Which of the following is usually not true about customer catalogs?

If the net price of a stove is $900 and the trade discount rate is 40%, the list price is:

The single equivalent discount rate of 9/5/4 is .17008.

Amount of trade discount is represented by the:

FOB shipping point means the seller pays cost of freight.

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

2/10, n/30 means the credit period is 30 days from the end of the discount period.

50 days from July 9 is August 28.

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

Which option yields the highest single equivalent discount?

Calculate the net price and amount of trade discount (use net price equivalent rate as well as single equivalent discount rate):

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

An invoice for office furniture for $1,210.88 with terms of 2/10, n/60 is dated October 3. (A) What is the last date on which the cash discount may be taken? (B) If paid within discount period, how much is the cash discount? (C) If the discount is missed, on what day does the credit period end?

A discount period is always greater than the credit period.

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

A cash discount sometimes is taken on the amount of trade discount.

Roland Corporation buys stoves from a wholesaler. The list price of a stove is $900, with a trade discount of 30%. The net price is:

The net price equivalent rate of 10/20/5 is .684.

A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was:

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Markups and Markdowns: Perishables and Breakeven Analysis

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters