Phase 3 Trade And Cash Discounts & Simple Interest And Simple Discounts

15 Questions | Total Attempts: 110

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Phase 3 Trade And Cash Discounts & Simple Interest And Simple Discounts

Phase 3 Trade and Cash Discounts & Simple Interest and Simple Discounts


Questions and Answers
  • 1. 
    The price at which the product should be sold to the consumer is called the _______ price.
    • A. 

      Retailer's

    • B. 

      List

    • C. 

      Manufacturer's

    • D. 

      Raw material

  • 2. 
    The amount deducted when a manufacturer sells an item to the wholesaler is called the ____________.
    • A. 

      markup

    • B. 

      Markup rate

    • C. 

      Trade discount

    • D. 

      bonus

  • 3. 
    Discounts that are deducted one after the other from the list price are called _______________.
    • A. 

      Trade discount series

    • B. 

      Inconsequential trade discounts

    • C. 

      Spontaneous trade discounts

    • D. 

      Earned trade discounts

  • 4. 
    When the decimal equivalents of the complements of the discount rates are multiplied to give a single decimal, this single decimal is called the ___________________.
    • A. 

      Markup

    • B. 

      Net decimal equivalent

    • C. 

      markdown

    • D. 

      asset depreciation

  • 5. 
    A reduction of the amount due on an invoice is called a(n) ______________.
    • A. 

      Trade discount

    • B. 

      Net discount

    • C. 

      Cash discount

    • D. 

      Unearned discount

  • 6. 
    The price paid for using money is called ____________.
    • A. 

      Principal

    • B. 

      rate

    • C. 

      Interest

    • D. 

      loan

  • 7. 
    _________ interest applies when interest for each year is based on the amount of the loan or investment.
    • A. 

      Compound

    • B. 

      Simple

    • C. 

      Linear

    • D. 

      Quadratic

  • 8. 
    _________ interest most often applies to savings accounts, installment loans, and credit cards and is based on the accumulated amount.
    • A. 

      Compound

    • B. 

      Simple

    • C. 

      Linear

    • D. 

      Quadratic

  • 9. 
    _______ is the amount of money borrowed or invested.
    • A. 

      Interest

    • B. 

      Principal

    • C. 

      Principle

    • D. 

      Rate

  • 10. 
    __________ is the percent of the principal paid as interest per time period.
    • A. 

      Principal

    • B. 

      Interest

    • C. 

      Rate

    • D. 

      Principle

  • 11. 
    ________ is the number of days, months, or years that the money is borrowed or invested.
    • A. 

      Rate

    • B. 

      Principal

    • C. 

      Time

    • D. 

      Mortgage

  • 12. 
    _________ value is the amount of the loan plus the interest.
    • A. 

      Loan

    • B. 

      Maturity

    • C. 

      Initial

    • D. 

      Opening

  • 13. 
    ________ time is based on counting 30 days in each month.
    • A. 

      Exact

    • B. 

      Preferred

    • C. 

      Ordinary

    • D. 

      Common

  • 14. 
    ________ time is based on counting the actual number of days in a time period.
    • A. 

      Exact

    • B. 

      Ordinary

    • C. 

      Latent

    • D. 

      Preferred

  • 15. 
    I = PRT is the __________.
    • A. 

      Exact interest formula

    • B. 

      ordinary interest formula

    • C. 

      Simple interest formula

    • D. 

      Compound interest formula

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