Which one of the following should be excluded from inventories?
A) Goods in transit to which title is held
B) Shop worn goods saleable at a price lower than the regular sale price
C) Goods out on consignment
D) Goods held on consignment

Question

Quizplus · Accepted Answer

Goods held on consignment should be excluded from inventories because they are not owned by the company. The consignor, not the consignee, retains ownership until the goods are sold.

Which One of the Following Should Be Excluded from Inventories