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.

Identify what constitutes legal consideration and differentiate it from inadequate or no consideration.

Analyze the legal requirements for consideration in various types of contracts, including unilateral and bilateral contracts.

Recognize the impact of consideration in contract modifications and settlements.

Understand the principle of promissory estoppel and its exceptions to the consideration requirement.

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Definitions:

Scenario Planning

A strategic planning method that organizations use to envision and prepare for various future conditions or business environments.

Structured Process

An organized and systematic approach to work or problem-solving, often involving sequential steps and established procedures.

Employee Involvement

The degree to which employees are encouraged to contribute ideas, input, and effort in decision-making processes and operational aspects of their work.

Decision Process

The series of steps taken by individuals or organizations to identify and evaluate options and make a choice among them.