chapter 7 mfb

List price × trade discount rate = amount of trade discount.

• TRUE

• FALSE

Trade discounts represent increases to the purchase price.

• TRUE

• FALSE

Sellers' catalogs list only the net price.

• TRUE

• FALSE

The trade discount results if the customer pays the bill within the discount period.

• TRUE

• FALSE

Amounts of trade discounts are not fixed.

• TRUE

• FALSE

Trade discounts sometimes are taken on freight.

• TRUE

• FALSE

Net price times rate of trade discount equals amount of trade discount.

• TRUE

• FALSE

Net price plus amount of trade discount equals list price.

• TRUE

• FALSE

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

• TRUE

• FALSE

The complement of 25% is 52%.

• TRUE

• FALSE