The major difference between a consignment purchase and a memorandum purchase is based on ________.
A) when title passes from seller to buyer
B) when an item is paid for
C) purchase price
D) eligibility for cooperative advertising allowances

Question

Quizplus · Accepted Answer

The major difference between a consignment purchase and a memorandum purchase is when title passes from the seller to the buyer. In a consignment purchase, title remains with the seller until the goods are sold by the retailer, while in a memorandum purchase, title passes from the seller to the buyer at the time of the sale.

The Major Difference Between a Consignment Purchase and a Memorandum