Consignment goods are:
A) Always paid for by the consignee when they take possession.
B) Goods shipped to the consignor who sells the goods for the owner.
C) Goods shipped by the owner to the consignee who sells the goods for the owner.
D) Reported in the consignee's books as inventory.
E) Not reported in the consignor's inventory since they do not have possession of the inventory.

Question

Quizplus · Accepted Answer

Consignment goods are goods shipped by the owner (consignor) to the consignee who sells the goods for the owner. In this case, the consignor retains ownership of the goods until they are sold, and the consignee acts as an agent for the consignor. Consignment goods are not paid for by the consignee until they are sold. Consignment goods should be reported as inventory in the consignor's books, but should not be included in the consignee's inventory since they do not own the goods.

Consignment Goods Are