Flashcards
Practical Business Math Procedures - Chapter 7 Key Terms Flash Cards
Flashcards do conjunto (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 a 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 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 their 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 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).
- 16Ordinary datingCash discount is available within the discount period. Full amount due by 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 discount.
- 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 - net price.
- 24Trade discount rateTrade discount amount given in percent.
Informações
- Descrição
- Flash cards for the Key Terms section of Practical Business Math Procedures Chapter 7.
- Criado por
- DANIEL OLDHAM
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