Goods held on consignment are
A) goods held at locations outside the entity.
B) goods held by the firm but belonging to customers.
C) HYPERLINK "http://www.businessdictionary.com/definition/goods.html" goods sent to an entity by the seller where the seller is only paid when the goods are HYPERLINK "http://www.investorwords.com/7717/sold.html" sold.
D) goods pledged as security for a loan.

Question

Quizplus · Accepted Answer

Goods held on consignment are goods sent to an entity by the seller where the seller is only paid when the goods are sold. This means that the seller still owns the goods until they are sold, and the entity holding the goods on consignment is essentially acting as a sales agent for the seller.

Goods Held on Consignment Are