Match the Following Terms with Their Definitions

question 90

Multiple Choice

Match the following terms with their definitions.
-Terms of sale

• A)Criteria on invoice
• B)Seller pays cost of freight
• C)Could be calculated by table look-up
• D)Savings from early payment
• E)Cash discount within first 10 days in next month after sale
• F)Amount of time to take advantage of a cash discount
• G)Discount period begins when goods are received
• H)100% less stated percent
• I)List price minus amount of trade discount
• J)Time period sellers give buyers to pay invoices
• K)1 - net price equivalent rate
• L)Buyer pays cost of freight
• M)Actual cost to buyer per dollar
• N)2/10, n/30
• O)Two or more trade discounts
• P)List price minus net price
• Q)Suggested retail price

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Definitions:

Past Consideration

Something of value that has been given or promised in the past and cannot serve as consideration for a current contract due to its occurrence before the contract was made.

Present Promise

A vow or commitment to take action or uphold terms at the current time.

Moral Obligation

A duty or responsibility that is perceived as ethically required, even though it is not legally enforceable.

Requirements Contract

A contractual agreement in which one party agrees to supply as much of a product or service as the other party needs during a specified period.