In Consignment Sales, the Consignee

question 142

Multiple Choice

In consignment sales, the consignee

• A) records the merchandise as an asset on its books.
• B) records a liability for the merchandise held on consignment.
• C) recognizes revenue when it ships merchandise to the consignor.
• D) prepares an "account report" for the consignor which shows sales, expenses, and cash receipts.

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Definitions:

Memory

The cognitive process of encoding, storing, and retrieving information.

Retrieval

The process of accessing and bringing into conscious awareness information stored in memory.

Stored Information

Information that is retained in the brain or another storage system for retrieval and use at a later time.

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.