Ben Simon Wants to Ensure That Sales in a Retail

question 46

Multiple Choice

Ben Simon wants to ensure that sales in a retail outlet are not recorded at the wrong amount. Which preventive control will help him ensure his objective?

• A) the signature of the goods by the warehouse receiver on a receiving report or a bill of lading
• B) a credit check by the credit manager
• C) automatic pricing of sales invoices using a master price file
• D) none of the above

Understand the doctrine of election of remedies and its implications in choosing among available legal options.

Recognize the impact of fraudulent, negligent, or innocent misrepresentation on contractual agreements and the associated remedies.

Understand how the power of avoidance in a contract can be lost and the legal effects.

Identify the circumstances under which specific performance and injunctions might be awarded.

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Definitions:

Balance Sheet

A financial statement that shows a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Statement of Cash Flows

A summary indicating how balance sheet account changes and revenue fluctuations impact cash and equivalents, broken down into the segments of operating, investing, and financing.

Operating Section

Part of a financial statement that reports on the company's revenues and expenses related to its primary operations.

Investing Section

A part of the statement of cash flows that reports the purchase and sale of long-term investments and property, plant, and equipment, reflecting how the company invests its cash.