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Trade and Cash Discounts

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which is not an example of a trade discount?

a)

SNR's Christmas Sale

b)

Wholesaler's price to a reseller

c)

SM's regular priced items

d)

Shopee's 10.10 items

2.

How do you compute for the net price?

a)

List Price * Trade Discount

b)

List Price - Trade Discount Amount

c)

Trade Discount Amount - List Price

d)

Trade Discount * List Price

3.

How do you compute for the trade discount amount?

a)

List Price * Trade Discount

b)

List Price - Trade Discount Amount

c)

Trade Discount Amount - List Price

d)

Trade Discount * List Price

4.

What is a Chain Discount?

a)

Different term Trade Discounts

b)

List Price

c)

Trade discounts applied in a series

d)

Discount Rate

5.

Why would sellers offer a cash discount?

a)

To complicate things in accounting

b)

To motivate customers to pay at a specific time

c)

To receive less income from the customer

d)

No reason

6.

If a dentist were to offer their services to a client, what discount would be most effective to for partial payments?

a)

Trade Discount

b)

Chain Discount

c)

Cash Discount

7.

If a manufacturer were to offer their products to their distributors, what discount would be most effective to for bulk orders?

a)

Trade Discount

b)

Chain Discount

c)

Cash Discount

8.

Which vendors are the most popular users of the Chain Discount? Select two.

a)

Shopee

b)

Watsons

c)

SM

d)

Lazada

e)

Lalamove

9.

Which vendors are the most popular users of the Trade Discount? Select two.

a)

SNR

b)

Monterey

c)

Landers

d)

Lazada

e)

Mini Stop

10.

Which of the following are Freight Terms commonly used for transporting goods? Select three.

a)

Buyer

b)

Seller

c)

FIFO

d)

FOB Shipping Point

e)

LIFO