Q31 Cash discounts are a calculated on returned goods b neve

Q31. Cash discounts are:

    a. calculated on returned goods

    b. never calculated on freight or sales tax

    c. always determined by the list price

    d. a reduction in the amount of the freight charges

Q32. Most products follow a product flow that begins with a manufacturer and then goes:

    a. to a wholesaler, then to a retailer, and finally to the consumer.

    b. to a broker, then to a retailer, and finally to the consumer.

    c. to a retailer and then to the consumer.

    d. directly to the consumer.

    e. all of the above

Q33. The trade discount amount is equal to:

    a. the net price times the trade discount rate

    b. the list price times the trade discount rate

    c. the list price divided by the trade discount rate

    d. the list price minus the trade discount rate

Q34. Which one of the following months does not have 30 days?

    a. April

    b. February

    c. September

    d. June

    e. they all have 31 days

Q35. The list price of a furnace is $2,468.00. The manufacturer offers a discount of 15%. The net price is:

    a. $209.78

    b. $370.20

    c. $2,097.80

    d. $3,702.00

Q36. The amount of money a manufacturer deducts from a list price is called a:

    a. net price

    b. dealer price

    c. trade discount

    d. cash discount

Q37. The reduction in the amount due on an invoice for paying within a certain period of time is called a:

    a. cash discount

    b. trade discount

    c. list price

    d. net price

Q38. The complement of 32 percent is:

    a. 53%

    b. 132%

    c. 86%

    d. 68%

Q39. The amount of money a manufacturer deducts from a list price is called a:

    a. net price

    b. dealer price

    c. trade discount

    d. cash discount

    e. none of the above

Q40. When a manufacturer offers a product for sale to a retailer, the amount deducted from the list price is called the:

    a. trade discount

    b. net price

    c. percent

    d. complement

Solution

SOLUTION

Q31. Cash discounts are:

       c.always determined by the list price

Q32. Most products follow a product flow that begins with a manufacturer and then goes:

    a. to a wholesaler, then to a retailer, and finally to the consumer.

Q34. Which one of the following months does not have 30 days?

    b. February

Q35. The list price of a furnace is $2,468.00. The manufacturer offers a discount of 15%. The net price is:

    c. $2,097.80

   

Q36. The amount of money a manufacturer deducts from a list price is called a:

    c. trade discount

Q37. The reduction in the amount due on an invoice for paying within a certain period of time is called a:

    a. cash discount

Q38. The complement of 32 percent is:

    d. 68%

Q39. The amount of money a manufacturer deducts from a list price is called a:

    c. trade discount

Q40. When a manufacturer offers a product for sale to a retailer, the amount deducted from the list price is called the:

    a. trade discount