MISCELLANEOUS EXERCISE - 1 - State whether each of the following is True or False.

1. Broker is an agent who gives a guarantee to seller that the buyer will pay the sale price of goods. – Flase

2. Cash discount is allowed on list price. – Flase

3. Trade discount is allowed on catalogue price. -True

4. The buyer is legally allowed 6 days grace period. – Flase

5. The date on which the period of the bill expires is called the nominal due date. -True

6. The difference between the banker’s discount and true discount is called sum due. – Flase

7. The banker’s discount is always lower than the true discount.– Flase

8. The bankers discount is also called as commercial discount.  -True

9. In general cash discount is more than trade discount. – Flase

10. A person can get both, trade discount and cash discount. -True