A True Consignment

question 50

Multiple Choice

A true consignment

• A)is a situation in which ownership is held by the consignee until the item is sold.
• B)is a type of lease.
• C)involves an immediate transfer of title between the consignor and consignee.
• D)is a type of security interest.
• E)is an arrangement where ownership remains with the consignor until the goods are sold and the consignee is not obliged to pay anything to the consignor until the goods are sold.

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Definitions:

Inventories

Quantities of goods that are held by a company for the purpose of sale in the future or as materials to be used in the production process.

Intangible Capital

Non-physical assets possessed by a company, such as intellectual property, brand names, and organizational knowledge that contribute to the company's value.

Tangible Capital

Physical assets owned by a firm that are used in the production process, such as buildings and machinery.

Goodwill

An intangible asset that represents the value of a company's brand name, customer relationships, employee relations, and other non-physical assets.