When accounting for inventory consignments, the issue which helps determine whether or not the inventory cost should be included on a company's balance sheet is:

Question

Quizplus · Accepted Answer

In consignment inventory, the owner of the inventory retains the title and the consignee holds the inventory on behalf of the owner. Therefore, the inventory cost should not be included on the consignee's balance sheet. Instead, the consignee should disclose the inventory held on consignment in the notes to the financial statements.

When Accounting for Inventory Consignments, the Issue Which Helps Determine