If the Owner of Goods Entrusts Them to a Merchant

question 37

True/False

If the owner of goods entrusts them to a merchant, the merchant can transfer good title to the goods to a buyer in the ordinary course of business even if the original owner does not want to sell the goods.

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Definitions:

AASB 9

An Australian Accounting Standards Board regulation that addresses the classification, measurement, and recognition of financial assets and financial liabilities.

Trade Debtors

Individuals or entities who owe money to a company from goods or services provided on credit.

Forward Contracts

Financial derivatives contracts between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Option Contracts

Financial derivatives that give the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.