Which One of the Following Is NOT an Example of Misclassification

question 15

Multiple Choice

Which one of the following is NOT an example of misclassification for sales?

• A) Recording the sale of a subsidiary as a reduction in investments
• B) Recording a sale of operating fixed assets as revenue
• C) Including retail sales as wholesale sales
• D) Including cash sales as credit sales

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Definitions:

Bailor

The person who temporarily transfers possession but not ownership of a property or good to another (the bailee) under a bailment agreement.

Bailee

A person or entity to whom personal property is delivered for a specified purpose without transfer of ownership.

Transfer Of Possession

The act of moving control or ownership of an asset from one party to another.

Bailee

A Bailee is a person or entity that has temporary possession of someone else's property under a bailment agreement.