Gross Price vs. Net Price

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

A credit term mentioned in an invoice is _____.

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1. The impact of recording under the Gross Price Method or the Net Price Method finally reflects in the cost of _____.

2. When payment for purchases are made, which of the following accounts gets debited?

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About This Quiz & Worksheet

Going through the quiz and worksheet is a great way to check your understanding of gross price and net price. You need to know how these prices differ for the quiz.

Quiz & Worksheet Goals

You'll get to check your comprehension of:

  • The purpose of a credit term mentioned in an invoice
  • When discounts are recorded under the Gross Price Method
  • Account that gets debited when payment for purchases are made
  • Method used to record purchase discounts to arrive at inventory costs

Skills Practiced

  • Distinguishing differences - compare and contrast main topics, such as gross price and net price
  • Information recall - access the knowledge you have gained about a credit term mentioned in an invoice
  • Interpreting information - verify that you can read information about when discounts are recorded under the Gross Price Method and interpret it correctly

Additional Learning

See what more you can learn about these financial topics by working through the lesson called Gross Price vs. Net Price. Use this lesson any time to study more about:

  • The relationship between suppliers and buyers
  • An explanation of a credit term in two case examples
  • The purpose of a balance sheet
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