Which of the Following Is Correct

question 26

Multiple Choice

Which of the following is correct?

• A)Goods on consignment are included in the consignee's inventory.
• B)Goods on consignment are included in the consignor's inventory.
• C)The consignee essentially has the risks and rewards of ovwnership.
• D)Inventory on consignment is always shown in a separate account.

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Definitions:

Accumulated Depreciation

The cumulative total of depreciation costs apportioned to a tangible asset since its initial operation.

Depreciation Expense

The allocated portion of an asset's cost expensed each year over its useful life to account for its wear and tear, obsolescence, or decline in value.

End-Of-Period Spreadsheet

A tool used in accounting to compile all balances and adjustments of an accounting period before preparing the final financial statements.

Retained Earnings

The portion of net income that is held by a company and not distributed to shareholders as dividends, used for investment or debt repayment.