Which of the following is correct?
A) Goods on consignment are included in the consignee's inventory.
B) Goods on consignment are included in the consignor's inventory.
C) The consignee essentially has the risks and rewards of ownership.
D) Inventory on consignment is always shown in a separate account.

Question

Quizplus · Accepted Answer

Goods on consignment remain the property of the consignor until they are sold. Therefore, they are included in the consignor's inventory, not the consignee's. The consignee acts as an agent for the consignor, holding and selling the goods without taking ownership.

Which of the Following Is Correct