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Angus Company Agreed to Sell Goods for Longhorn Company on Consignment,but

Question 34

Multiple Choice

Angus Company agreed to sell goods for Longhorn Company on consignment,but wasn't willing to take ownership of the goods in case they were difficult to sell.Which of the following statements is true?


A) Angus owns the inventory and should report it on its balance sheet.
B) Longhorn owns the inventory,but should not report it on its balance sheet because Angus actually holds the inventory.
C) Angus owns the inventory,since possession is nineteenths of the law,but should not report it on its balance sheet.
D) Longhorn owns the inventory and should report it on its balance sheet.

Correct Answer:

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