Fichas
Chapter 7 Key Terms
Fichas del conjunto (25)
- 1Trade DiscountReduction off original selling price (list price) not related to early payment.
- 2Cash DiscountSavings that result from early payment by taking advantage of discounts offered by the seller; discount is not taken on freight or taxes.
- 3List PriceSuggested retail price paid by customers.
- 4Trade Discount AmountList price less net price.
- 5InvoiceDocument recording purchase and sales transactions.
- 6Trade Discount RateTrade discount amount given in percent.
- 7Net PriceList price less amount of trade discount. The net price is before any cash discount.
- 8Freight TermsDetermine how freight will be paid. Most common freight terms are FOB shipping point and FOB destination.
- 9FOB Shipping PointBuyer pays cost of freight in getting goods to his location.
- 10FOB DestinationSeller pays cost of freight in getting goods to buyer's location.
- 11Single Trade DiscountCompany gives only one trade discount.
- 12Complement100% less the stated percent. Example: 18% 82% is the complement (100%-18%)
- 13Chain DiscountTwo or more trade discounts that are applied to the balance remaining after the previous discount is taken. Often called a series discount.
- 14Series DiscountTwo or more trade discounts that are applied to the balance remaining after the previous discount is taken. Often called a series discount.
- 15Net Price Equivalent RateWhen multiplied times the list price, this rate or factor produces the actual cost to the buyer. Rate is found by taking the complement of each term in the discount and multiplying them together. (Do not round off)
- 16Single 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.)
- 17Terms of the SaleCriteria on invoice showing when cash discounts are available, such as rate and time period.
- 18Credit PeriodCredit days are counted from date of invoice. Has no relationship to the discount period.
- 19Discount PeriodAmount of time to take advantage of a cash discount.
- 20Due DatesMaturity date, or when the note will be repaid.
- 21End of Credit PeriodLast day from date of invoice when customer can take cash discount.
- 22Ordinary DatingCash discount is available within the discount period. Full amount due by end of credit period if discount is missed.
- 23Receipt of Goods (ROG)Used in calculating the cash discount period; begins the day that the goods are received.
- 24End of Month (EOM)Cash discount period begins at the end of the month invoice dates. After the 25th discount period, one additional month results.
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Información
- Descripción
- Flash cards for chapter 7 contained the key terms and their definitions.
- Creado por
- Veronica Huninghake
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