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

15 Questions | By Tdas2002 | Last updated: Mar 20, 2022 | Total Attempts: 126

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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