Question 1

Match the following terms with their definitions.
-Single equivalent discount rate

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 2

Match the following terms with their definitions.
-Due dates

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 3

A manufacturer of skis offered chain discounts of 10/5/4 to many of its customers. Joe Jones ordered skis that had a total list price of $149,500. The amount of the trade discount is:

Accepted Answer

A) $122,709.60 
B) $26,970.40 
C) $26,790.40 
D) $122,907.69 
E) None of these 
A) $122,709.60 
B) $26,970.40 
C) $26,790.40 
D) $122,907.69 
E) None of these

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

Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. Jones agreed to prepay the $35 freight. Assuming Long pays the invoice within the discount period, what does Long pay Jones?

Accepted Answer

Multiply the list pr

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Gross invoice (includes freight): $500
Freight: $100
Date of invoice: 9/10
Terms: 3/10, 1/15, n/30
Date of payment: 9/22
Discount: (A)
Net Price: (B)

Accepted Answer

Start by removing the cost of the freig

Question 9

A Timex watch with a 30% trade discount costs $39.99. What is the list price?

Accepted Answer

List Price

Question 10

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 11

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 12

Match the following terms with their definitions.
-Cash discount

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 13

Match the following terms with their definitions.
-Credit period

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

FOB shipping point means:

Accepted Answer

A) Seller pays the cost of freight 
B) Buyer pays the cost of freight 
C) Title to goods shifts to buyer while being shipped 
D) Seller cannot pay cost of freight 
E) None of these 
A) Seller pays the cost of freight 
B) Buyer pays the cost of freight 
C) Title to goods shifts to buyer while being shipped 
D) Seller cannot pay cost of freight 
E) None of these

Question 16

Calculate (A)amount to be credited and (B)balance outstanding:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Invoice } & & & \text { Payment } & & \text { Amount to be } & \text { Balance } \
\text { Amount } & \text { Terms } & \text { Invoice Date } & \text { Amount } & \text { Date Paid } & \text { credited } & \text { Outstanding } \
\hline \$ 3,000 & 2 / 10 , \mathrm { n } / 30 & \text { July 5th } & \$ 600 & \text { July 14th } & \text { (A) } & \text { (B) } \
\hline
\end{array}$$

Accepted Answer

A. $612.24

Question 17

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

Accepted Answer

A) True 
 B)False

Match the following terms with their definitions. -Single equivalent discount rate

Match the following terms with their definitions. -Due dates

A manufacturer of skis offered chain discounts of 10/5/4 to many of its customers. Joe Jones ordered skis that had a total list price of $149,500. The amount of the trade discount is:

Amount of trade discount is represented by the:

Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. Jones agreed to prepay the $35 freight. Assuming Long pays the invoice within the discount period, what does Long pay Jones?

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

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

Gross invoice (includes freight): $500 Freight: $100 Date of invoice: 9/10 Terms: 3/10, 1/15, n/30 Date of payment: 9/22 Discount: (A) Net Price: (B)

A Timex watch with a 30% trade discount costs $39.99. What is the list price?

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?

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?

Match the following terms with their definitions. -Cash discount

Match the following terms with their definitions. -Credit period

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

FOB shipping point means:

Calculate (A)amount to be credited and (B)balance outstanding: Invoice Payment Amount to be Balance Amount Terms Invoice Date Amount Date Paid credited Outstanding \ 3,000 2/10,/30 July 5th \ 600 July 14th (A) (B)

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

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

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters

Exam 7: Discounts: Trade and Cash

Match the following terms with their definitions. -Single equivalent discount rate

Match the following terms with their definitions. -Due dates

A manufacturer of skis offered chain discounts of 10/5/4 to many of its customers. Joe Jones ordered skis that had a total list price of $149,500. The amount of the trade discount is:

Amount of trade discount is represented by the:

Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. Jones agreed to prepay the $35 freight. Assuming Long pays the invoice within the discount period, what does Long pay Jones?

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

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

Gross invoice (includes freight): $500 Freight: $100 Date of invoice: 9/10 Terms: 3/10, 1/15, n/30 Date of payment: 9/22 Discount: (A) Net Price: (B)

A Timex watch with a 30% trade discount costs $39.99. What is the list price?

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?

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?

Match the following terms with their definitions. -Cash discount

Match the following terms with their definitions. -Credit period

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

FOB shipping point means:

Calculate (A)amount to be credited and (B)balance outstanding: Invoice Payment Amount to be Balance Amount Terms Invoice Date Amount Date Paid credited Outstanding \ 3,000 2/10,/30 July 5th \ 600 July 14th (A) (B)

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

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

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters