Cash Discounts vs. Trade Discounts Quiz

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Discount concepts for Grade 9

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DaneyDane

Trinidad and Tobago

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Froggy Jumps Cash Discounts vs. Trade Discounts QuizOnline version Discount concepts for Grade 9 by DaneyDane 1 Which type of discount is offered by a manufacturer to a wholesaler to encourage bulk buying? a Seasonal Discount b Trade Discount c Cash Discount 2 Which of the following is NOT recorded in the books of account? a Discount Allowed b Cash Discount c Trade Discount 3 What is the primary objective of offering a Cash Discount? a To encourage prompt or early payment b To increase the volume of sales c To reduce the list price of a product 4 On which value is a Trade Discount usually calculated? a Customer’s Credit Score b The List Price c The Net Price 5 If a customer pays within a specified period, like '2/10, n/30', what type of discount are they receiving? a Trade Discount b Cash Discount c Bulk Discount 6 When is a Trade Discount allowed? a Only for cash purchases b At the time of payment c At the time of purchase/sale 7 A business buys goods worth $1,000 with a 10% Trade Discount. What amount is recorded in the Purchase Book? a $1,100 b $1,000 c $900 8 Trade discounts are subtracted first, and only the NET amount is recorded in the cash/purchases book. This statement is: a False b True c Not sure 9 True or False: A Cash Discount is calculated on the amount remaining after the Trade Discount has been deducted. a False b Not applicable c True 10 If a wholesaler gives a 20% discount to all retailers who buy from them, this is an example of a: a Bad Debt b Trade Discount c Cash Discount

Froggy Jumps

Cash Discounts vs. Trade Discounts QuizOnline version

Discount concepts for Grade 9

by DaneyDane

Which type of discount is offered by a manufacturer to a wholesaler to encourage bulk buying?

Seasonal Discount

Trade Discount

Cash Discount

Which of the following is NOT recorded in the books of account?

Discount Allowed

Cash Discount

Trade Discount

What is the primary objective of offering a Cash Discount?

To encourage prompt or early payment

To increase the volume of sales

To reduce the list price of a product

On which value is a Trade Discount usually calculated?

Customer’s Credit Score

The List Price

The Net Price

If a customer pays within a specified period, like '2/10, n/30', what type of discount are they receiving?

Trade Discount

Cash Discount

Bulk Discount

When is a Trade Discount allowed?

Only for cash purchases

At the time of payment

At the time of purchase/sale

A business buys goods worth $1,000 with a 10% Trade Discount. What amount is recorded in the Purchase Book?

$1,100

$1,000

$900

Trade discounts are subtracted first, and only the NET amount is recorded in the cash/purchases book. This statement is:

False

True

Not sure

True or False: A Cash Discount is calculated on the amount remaining after the Trade Discount has been deducted.

False

Not applicable

True

If a wholesaler gives a 20% discount to all retailers who buy from them, this is an example of a:

Bad Debt

Trade Discount

Cash Discount

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Cash Discounts vs. Trade Discounts Quiz

Froggy Jumps

About this activity

Created by

Download the paper version to play

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Cash Discounts vs. Trade Discounts QuizOnline version

by DaneyDane

Which type of discount is offered by a manufacturer to a wholesaler to encourage bulk buying?

Which of the following is NOT recorded in the books of account?

What is the primary objective of offering a Cash Discount?

On which value is a Trade Discount usually calculated?

If a customer pays within a specified period, like '2/10, n/30', what type of discount are they receiving?

When is a Trade Discount allowed?

A business buys goods worth $1,000 with a 10% Trade Discount. What amount is recorded in the Purchase Book?

Trade discounts are subtracted first, and only the NET amount is recorded in the cash/purchases book. This statement is:

True or False: A Cash Discount is calculated on the amount remaining after the Trade Discount has been deducted.

If a wholesaler gives a 20% discount to all retailers who buy from them, this is an example of a:

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