Goods held on consignment should be included in the consignee's ending inventory.

Name: Goods held on consignment should be included in the consignee's ending inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Goods held on consignment are not owned by the consignee and therefore should not be included in their ending inventory. The consignee is simply holding the goods on behalf of the consignor and will only recognize revenue and cost of goods sold when the goods are sold to a third party.

Goods Held on Consignment Should Be Included in the Consignee's