S1: Trade and Cash Discounts

A product has a list price of RM200 and a trade discount of 10%. What is the discount amount?

• RM10

• RM20

• RM30

• RM40

What is the net price if the list price is RM500 and a trade discount of 25% is given?

• RM375

• RM400

• RM425

• RM350

What is the formula for net price using a single trade discount?

• List Price + Discount

• List Price × Discount Rate

• List Price × (1 − Discount Rate)

• List Price ÷ Discount Rate

What is the trade discount amount on RM1,000 with a 15% discount?

• RM100

• RM150

• RM200

• RM300

A company receives a trade discount of 10% and 5%. What is the net price factor?

• 0.90 × 0.95

• 0.10 + 0.05

• 1 − 0.15

• 0.85

A list price is RM800. After 20% and 10% trade discounts, what is the net price?

• RM576

• RM640

• RM720

• RM680

A series discount of 25%, 10%, and 5% is equal to a single discount of approximately:

• 35%

• 37.5%

• 40%

• 38.75%

What does the term 2/10, net 30 mean

• Pay in 2 days for 10% discount

• Pay 10% in 2 days

• 2% discount if paid within 10 days, otherwise full amount due in 30

• No discount is given

If an invoice is RM1,000 and paid within discount period of 2/10, what is the payment amount?

• RM1,000

• RM980

• RM990

• RM950

Calculate the cash discount on RM750 if terms are 3/10 and paid within 10 days.

• RM25

• RM22.50

• RM30

• RM27