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Name: ___________________________________
Date: ___________________________________
BA120 Unit 2 Terminology Exam
Created by IECRB
- 1. Savings that result from early payment by taking advantage of discounts offered by the seller; discount is not taken on freight or taxes.
- 2. Two or more trade discounts that are applied to the balance remaining after the previous discount is taken. Often called a series discount.
- 3. 100% less the stated percent.
- 4. Credit days are counted from date of invoice. Has no relationship to the discount period.
- 5. Maturity date, or when the note will be repaid.
- 6. Last day from date of invoice when customer can take cash discount.
- 7. Determine how freight will be paid.
- 8. Document recording purchase and sales transactions.
- 9. Suggested retail price paid by customers.
- 10. When multiplied times the list price, this rate or factor produces the actual cost to the buyer. Rate is found by taking the complement of each term in the discount and multiplying them together.
- 11. Calculated by decrease in price over original amount.
- 12. Calculated by increase in price over original amount.
- 13. Stands for hundredths.
- 14. Amount or part that results from multiplying the base times the rate. Not expressed as a percent; it is expressed as a number.
- 15. Percent that is multiplied times the base that indicates what part of the base we are trying to compare to. Rate is not a whole number.
- 16. Used in calculating the cash discount period; begins the day that the goods are received.
- 17. Criteria on invoice showing when cash discounts are available, such as rate and time period.
- 18. Cash discount is available within the discount period. Full amount due by end of credit period if discount is missed.
- 19. List price less amount of trade discount. The net price is before any cash discount.
- 20. Cash discount period begins at the end of the month invoice is dated. After the 25th discount period, one additional month results.
- a. Freight Terms
- b. Due Dates
- c. List Price
- d. Cash Discount
- e. Credit Period
- f. Receipt of Goods (ROG)
- g. Net Price Equivalent Rate
- h. Ordinary Dating
- i. Percent Increase
- j. Portion
- k. Percent’s
- l. Terms of the Sale
- m. End of Month (EOM)
- n. Invoice
- o. Net Price
- p. Complement
- q. Rate
- r. Chain Discount
- s. Percent Decrease
- t. End of Credit Period
Name: ___________________________________
Date: ___________________________________
BA120 Unit 2 Terminology Exam (Answer Key)
Created by IECRB
- d 1. Savings that result from early payment by taking advantage of discounts offered by the seller; discount is not taken on freight or taxes.
- r 2. Two or more trade discounts that are applied to the balance remaining after the previous discount is taken. Often called a series discount.
- p 3. 100% less the stated percent.
- e 4. Credit days are counted from date of invoice. Has no relationship to the discount period.
- b 5. Maturity date, or when the note will be repaid.
- t 6. Last day from date of invoice when customer can take cash discount.
- a 7. Determine how freight will be paid.
- n 8. Document recording purchase and sales transactions.
- c 9. Suggested retail price paid by customers.
- g 10. When multiplied times the list price, this rate or factor produces the actual cost to the buyer. Rate is found by taking the complement of each term in the discount and multiplying them together.
- s 11. Calculated by decrease in price over original amount.
- i 12. Calculated by increase in price over original amount.
- k 13. Stands for hundredths.
- j 14. Amount or part that results from multiplying the base times the rate. Not expressed as a percent; it is expressed as a number.
- q 15. Percent that is multiplied times the base that indicates what part of the base we are trying to compare to. Rate is not a whole number.
- f 16. Used in calculating the cash discount period; begins the day that the goods are received.
- l 17. Criteria on invoice showing when cash discounts are available, such as rate and time period.
- h 18. Cash discount is available within the discount period. Full amount due by end of credit period if discount is missed.
- o 19. List price less amount of trade discount. The net price is before any cash discount.
- m 20. Cash discount period begins at the end of the month invoice is dated. After the 25th discount period, one additional month results.
- a. Freight Terms
- b. Due Dates
- c. List Price
- d. Cash Discount
- e. Credit Period
- f. Receipt of Goods (ROG)
- g. Net Price Equivalent Rate
- h. Ordinary Dating
- i. Percent Increase
- j. Portion
- k. Percent’s
- l. Terms of the Sale
- m. End of Month (EOM)
- n. Invoice
- o. Net Price
- p. Complement
- q. Rate
- r. Chain Discount
- s. Percent Decrease
- t. End of Credit Period
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