Question 1

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 theseF) A) and C)
G) A) and B)

Question 2

Goods sold after the 25th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

With terms of 2/10, n/30:

Accepted Answer

A)  Credit period is 10 days from date of invoice
B)  Credit period is 40 days
C)  Credit period extends into first 10 days of next month
D)  Credit period is 30 days from date of invoice
E)  None of theseF) D) and E)
G) B) and E)

Question 5

If a manufacturer's list price is $800 and Bill's Outlet buys the goods for $650, what is the trade discount percent? (Round answer to the nearest hundredth percent.)

Accepted Answer

The answer of If a manufacturer's list price is $800...

Question 6

The net price equivalent rate of 9/15/18 is:

Accepted Answer

A)  .36573
B)  .63573
C)  .36427
D)  .63427
E)  None of theseF) B) and C)
G) A) and E)

Question 7

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 theseF) A) and B)
G) A) and C)

Question 8

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 9

The portion could represent the amount of trade discount in the portion formula.

Accepted Answer

A) True 
 B)False

Question 10

The complement of 17% is:

Accepted Answer

A)  71%
B)  60%
C)  83%
D)  38%
E)  None of theseF) B) and C)
G) A) and E)

Question 11

A radio with a net price of $700 and a trade discount rate of 30% has a list price of $1,000.

Accepted Answer

A) True 
 B)False

Question 12

Black & Decker Manufacturing sold a set of saws to True Value Hardware. The list price was $3,800. Black & Decker offered a chain discount of 8/3/1. The net price of the saws is:

Accepted Answer

A)  $3,537.12
B)  $3,537.21
C)  $3,391.12
D)  $3,357.21
E)  None of theseF) A) and E)
G) B) and C)

Question 13

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 theseF) A) and B)
G) D) and E)

Question 14

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 theseF) A) and D)
G) A) and E)

Question 15

The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1.

Accepted Answer

A) True 
 B)False

Question 16

Which month has 30 days?

Accepted Answer

A)  January
B)  May
C)  June
D)  July
E)  None of theseF) A) and B)
G) B) and D)

Question 17

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 theseF) A) and B)
G) A) and C)

Question 18

Bloomberg's is offered the following chain discount(s); what is the lowest net price equivalent rate it will pay?

Accepted Answer

The answer of Bloomberg's is offered the following chain discount(s);...

Question 19

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 theseF) A) and C)
G) D) and E)

Question 20

Marvin Gate bought some fencing from a wholesaler for $6,000. The wholesaler offered a trade discount of 35%. What was the original price? (Round to the nearest cent.)

Accepted Answer

The answer of Marvin Gate bought some fencing from a...

Exam 7: Discounts: Trade and Cash

Bloomberg's is offered the following chain discount(s); what is the lowest net price equivalent rate it will pay?

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The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1.

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The net price equivalent rate of 9/15/18 is:

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The credit period is:

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The portion could represent the amount of trade discount in the portion formula.

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If a manufacturer's list price is $800 and Bill's Outlet buys the goods for $650, what is the trade discount percent? (Round answer to the nearest hundredth percent.)

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Amount of trade discount equals:

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

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

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Which month has 30 days?

Correct AnswerverifiedShow Answer

Black & Decker Manufacturing sold a set of saws to True Value Hardware. The list price was $3,800. Black & Decker offered a chain discount of 8/3/1. The net price of the saws is:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The complement of 17% is:

Correct AnswerverifiedShow Answer

A radio with a net price of $700 and a trade discount rate of 30% has a list price of $1,000.

Correct AnswerverifiedShow Answer

With terms of 2/10, n/30:

Correct AnswerverifiedShow Answer

Marvin Gate bought some fencing from a wholesaler for $6,000. The wholesaler offered a trade discount of 35%. What was the original price? (Round to the nearest cent.)

Correct AnswerverifiedShow Answer

Goods sold after the 25th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

FOB shipping point means:

Correct AnswerverifiedShow Answer

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Goods sold after the 25^th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.

Correct Answer
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