All of the Following Statements Related to Goods on Consignment

question 50

Multiple Choice

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

• A)Goods on consignment are goods provided by the owner,call the consignor.
• B)A consignee sells goods for the owner.
• 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:

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period.

Balance Sheet

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Monthly Statements

Monthly statements are periodic financial reports issued by banks, credit card companies, and other institutions showing transactions, balances, and other financial activities over a month.

Mismanagement Decisions

Decisions that result in a poor direction, operation, or administration of a business, leading to its decline or failure.