With consignment arrangements
A)the consignee owns the goods
B)the consignor has physical possession of the goods
C)the consignor recognizes revenue when it transfers the goods to the consignee
D)the consignor owns the goods until they are sold

Question

Quizplus · Accepted Answer

With consignment arrangements, the consignor continues to own the goods until they are sold by the consignee. Therefore, option D is the correct choice. Option A is incorrect because the consignee does not own the goods. Option B is incorrect because the consignor is the one who physically possesses the goods. Option C is also incorrect because revenue recognition occurs when the goods are sold, not when they are transferred to the consignee.

With Consignment Arrangements