Karteikarten
Chapter 7 Key Terms
Karten in diesem Stapel (24)
- 1Cash DiscountSavings that result from early payment by taking advantage of discounts offered by the seller; discount is not taken on freight or taxes.
- 2Chain DiscountsTwo or more trade discounts that are applied to the balance remaining after the previous discount is taken.
- 3Complement100% less the stated percent.
- 4Credit PeriodCredit days are counted from date of invoice.
- 5Discount PeriodAmount of time to take advantage of cash discount.
- 6Due DatesMaturity date, or when the note will be repaid.
- 7End of Credit PeriodLast day from date of invoice when customer can take cash discount.
- 8End of the Month (EOM)Cash discount period begins at the end of the month invoice is dated. After the 25th discount period, one additional month results.
- 9FOB DestinationSeller pays cost of freight in getting goods to buyer's location.
- 10FOB Shipping PointBuyer pays cost of freight in getting goods to his location.
- 11Freight TermsDetermine how freight will be paid. Most common freight terms are FOB shipping point and FOB destination.
- 12InvoiceDocument recording purchase and sales transactions.
- 13List PriceSuggested retail price paid by customers.
- 14Net PriceList price less amount of trade discount. The net price is before any cash discount.
- 15Net Price Equivalent RateWhen multiplied times the list price, this rate of factor produces the actual cost to the buyer. Rate is found by taking the complement of each term i the discount and multiplying them together (do not round off).
- 16Ordinary DatingCash discount is available within the discount period. Full amount due by the end of credit period if discount is missed.
- 17Receipt of Goods (ROG)Used in calculating the cash discount period; begins the day that the goods are received.
- 18Series DiscountsTwo or more trade discounts that are applied to the balance remaining after the previous discount is taken.
- 19Single Equivalent Discount RateRate or factor as a single discount that calculates the amount of the trade discount by multiplying the rate times the list price. This single equivalent discount replaces a series of chain discounts. The single equivalent rate is (1 - Net price equivalent rate)
- 20Single Trade DiscountCompany gives only one trade.
- 21Terms of the SaleCriteria on invoice showing when cash discounts are available, such as rate and time period.
- 22Trade DiscountReduction off original selling price (list price) not related to early payment.
- 23Trade Discount AmountList price less net price.
- 24Trade Discount RateTrade discount amount given in percent.