Match the Following Terms with Their Definitions

question 14

Multiple Choice

Match the following terms with their definitions.
-Amount of trade discount

• 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:

Tax

A mandatory monetary fee or different form of charge placed on a taxpayer by a government entity to finance government operations and assorted public expenses.

Good

A material item or service that satisfies a want or need; can be economic (having monetary value) or free (like air) but is essential for transactions in the market.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits that buyers and sellers receive from participating in the market.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.