Katrina Entered into a Contract to Purchase a Computer System

question 4

True/False

Katrina entered into a contract to purchase a computer system from Stacey Systems after a call from Stacey System's sales representative who mistakenly informed Katrina that she would receive a 40 percent discount. When Katrina is billed for the full amount, her only recourse is to pay the bill and bring an action against Stacey Systems and the sales representative for the difference.

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Definitions:

Inventory

The goods and materials a business holds for the ultimate purpose of resale, comprising raw materials, work-in-progress products, and finished goods.

Physical Flow

The actual movement of goods through a production process or supply chain.

Internal Control

Methods and practices put in place by an organization to guarantee the accuracy of financial and accounting data, encourage responsibility, and inhibit fraudulent activities.

Physical Inventory

The process of counting and verifying the actual quantities of goods in stock at a particular time.