Goods on consignment are shipped by the owner to the consignee who sells the goods for the owner, and they are reported on the consignor's books as inventory. The consignee does not take ownership of the goods until they are sold, so they are not reported as inventory on their books.

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Goods on Consignment

Question 75

Multiple Choice

Goods on consignment

A) Are goods shipped by the owner to the consignee who sells the goods for the owner
B) Are reported in the consignee's books as inventory
C) Are reported on the consignor's books as inventory
D) Are goods shipped by the owner to the consignee who sells the goods for the owner and are reported in the consignee's books as inventory
E) Are goods shipped by the owner to the consignee who sells the goods for the owner and are reported on the consignor's books as inventory

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