All of the Following Statements Related to Goods on Consignment

question 51

Multiple Choice

All of the following statements related to goods on consignment are true except:

• A) A consignee sells goods for the owner.
• B) Goods on consignment are goods provided by the owner, call the consignor.
• C) The consignor continues to own the consigned goods.
• D) The consignee reports the goods in its inventory until sold.
• E) The consignor reports the goods in its inventory until sold.

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Definitions:

General Journal

The general journal is a comprehensive record of financial transactions over the life of a company, listed in chronological order.

Purchases Journal

An accounting record where all purchases of merchandise, inventory, and other supplies on credit are recorded, excluding cash purchases.

Cash Payments Journal

A journal used in accounting to record all cash outflows or payments made by a company.

Revenue Journal

A specialized accounting journal used to record the sales of services or goods on credit, highlighting the revenue aspect of transactions.