_________ are orders for goods that are stored by the seller, often, because the buyer is not ready or able to receive the goods at the time of the order.
A) Sham sales
B) Side agreements
C) Consignment sales
D) Bill and hold sales
E) Related party transactions

Question

Quizplus · Accepted Answer

A: Incorrect; Sham sales is a term used for various types of fictitious sales.
B: Incorrect; Side agreements are sales terms and arrangements (e.g., a liberal return policy) that are made outside normal reporting channels.
C: Incorrect; Consignment sales are transactions where one company holds and sells goods that are owned by another company. Recording the full amount of a consignment sale leads to inflated revenues and corresponding costs.
D: Correct
E: Related-party transactions are business deals or arrangements that are made by two parties who have a relationship that creates conflicts of interest in a business setting.

_________ Are Orders for Goods That Are Stored by the Seller