Lesson 4

Question 1

refers to the term granted by the seller to the buyer.

Answer 1

Term of sale / purchases

Question 2

means that a w% cash discount 5 is granted the buyer if the account is paid within the 10 days from date of invoice/ purchase.

Answer 2

A term 2/10 , n/30

Question 3

do not grant discount the account should be paid within the number of days like 30 or 60 from date of purchase invoice or until the end of the month of purchase to pay the account.

Answer 3

n/30, n/60

Question 4

Deadline for discount period is the date up to which a discount is granted to the buyer if payment is made on or before said date.

Answer 4

True

Question 5

Deadline for credit period is the date up to which the buyer can pay is or her purchase without any additional cost, which the seller can impose, If payment is made beyond such deadline.

Answer 5

True

Question 6

NIP x Cash discount rate

Answer 6

Cash discount

Question 7

NIP cash discount

Answer 7

Net amount due