Multiple Choice Quiz
Multiple Choice Quiz
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 1 Trade discounts represent increases to the purchase price. A) True B) False 2 The portion could represent the amount of trade discount in the portion formula. A) True B) False 3 The net price equivalent rate helps calculate the actual cost to the seller. A) True B) False 4 The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1. A) True B) False 5 50 days from July 9 is August 28. A) True B) False 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 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 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 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 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 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 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 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 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 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