Todd Sweeney is an artist who sells his work under consignment (he displays his work in local barbershops, and customers purchase his work there). Sweeney recently transferred a painting on consignment to a local barbershop.
- Sweeney most likely should recognize revenue when:
A) He paints the painting, because the painting is produced while he works.
B) He transfers the painting to a barbershop.
C) The barbershop sells the painting.
D) The barbershop's right of return expires.

Question

Quizplus · Accepted Answer

Consignment arrangements normally do not qualify for revenue recognition until delivery is made to the end customer. Prior to that point, control of goods is viewed as having been retained by the consignor, not by the consignee.

Todd Sweeney Is an Artist Who Sells His Work Under