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| 1 | |
Trade discounts represent increases to the purchase price. |
| | A) | True |
| | B) | False |
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| 2 | |
The portion could represent the amount of trade discount in the portion formula. |
| | A) | True |
| | B) | False |
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| 3 | |
The net price equivalent rate helps calculate the actual cost to the seller. |
| | A) | True |
| | B) | False |
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| 4 | |
The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1. |
| | A) | True |
| | B) | False |
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| 5 | |
50 days from July 9 is August 28. |
| | A) | True |
| | B) | False |
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| 6 | |
4/10, n/30 R.O.G. means a 4 percent discount can be taken within 10 days before receipt of goods. |
| | A) | True |
| | B) | False |
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| 7 | |
Amount of trade discount is represented by the: |
| | A) | Base |
| | B) | Rate |
| | C) | Portion |
| | D) | Base divided by rate |
| | E) | None of the above |
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| 8 | |
If the net price of a stove is $900 and the trade discount rate is 40 percent, the list price is: |
| | A) | $3,600 |
| | B) | $2,250 |
| | C) | $1,500 |
| | D) | $1,260 |
| | E) | None of the above |
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| 9 | |
The single equivalent discount rate of the trade discount 5/4/1 is: |
| | A) | .09712 |
| | B) | .90288 |
| | C) | .00002 |
| | D) | .99998 |
| | E) | None of the above |
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| 10 | |
Cash discounts are: |
| | A) | Always calculated on list price |
| | B) | Sometimes calculated with freight |
| | C) | Sometimes calculated with returned good |
| | D) | Never calculated on freight and returns |
| | E) | None of the above |
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| 11 | |
2/10, n/30 is an example of: |
| | A) | Ordinary dating |
| | B) | Receipt of goods |
| | C) | End of month |
| | D) | Extra dating |
| | E) | None of the above |
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| 12 | |
An invoice dated March 28 with terms of 1/10, E.O.M. results in the end of the credit period on: |
| | A) | May 10 |
| | B) | April 10 |
| | C) | May 30 |
| | D) | May 31 |
| | E) | None of the above |
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| 13 | |
Mel's Dress Shop received an invoice dated July 17 for $1,200, with terms of 2/10, 1/15, n/60. On July 20, Mel's Dress Shop sent a partial payment of $650. The actual amount that should be credited is: |
| | A) | $637.00 |
| | B) | $663.00 |
| | C) | $663.27 |
| | D) | $663.72 |
| | E) | None of the above |
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| 14 | |
B Tool Manufacturer sold a set of jigsaws to Buy Hardware. The list price was $1,950. B Tool offered a chain discount of 6/5/4. The net price of the jigsaws is: |
| | A) | $1,671.70 |
| | B) | $1,735.50 |
| | C) | $1,170.00 |
| | D) | $1,617.70 |
| | E) | None of the above |
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| 15 | |
A living room set lists for $10,800 and carries a trade discount of 20 percent. Freight (FOB shipping point) of $60 is not part of list price. The delivered price of the living room set including freight assuming a cash discount of 3 percent is: |
| | A) | $8,440.80 |
| | B) | $8,380.80 |
| | C) | $8,477.80 |
| | D) | $8,417.80 |
| | E) | None of the above |
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