In a Consignment Sale

question 40

Multiple Choice

In a consignment sale

• A)the importer only pays the exporter once he sells the merchandise.
• B)the exporter retains title to the merchandise that is shipped.
• C)if the goods do not sell,the importer can return them to the exporter.
• D)all of the options

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Definitions:

Post-Closing Trial Balance

A listing of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Retained Earnings Account

An equity account on the balance sheet that represents the accumulated net income of a company that has not been distributed to shareholders as dividends.

Dividends Account

An account in the ledger that records dividends paid out to shareholders by a company.