Goods on Consignment Should Be Included in the Inventory of

question 55

Multiple Choice

Goods on consignment should be included in the inventory of

• A) the consignor but not the consignee.
• B) the consignee but not the consignor.
• C) both the consignor and the consignee.
• D) neither the consignor nor the consignee.

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Definitions:

Reporting Unusual Items

The practice of separately reporting significant financial transactions or events that are not typical of the business's regular operations, to provide clarity in financial statements.

Income Statement

A financial report that summarizes a company's revenues, expenses, and profits/losses over a specific period of time.

Cash Flows

The inflows and outflows of cash and cash equivalents for a business, indicating its financial health.

Dividend Yield

A profitability ratio that measures the rate of return to common stockholders from cash dividends, computed by dividing the dividends per share of common stock by the market price per share of common stock.