Which of the following occur when a goods receipt is posted for raw materials on a consignment basis?
A)The status of the materials is set to consignment stock.
B)The inventory account is impacted.
C)The quantity of materials in inventory is increased.
D)The quantity of materials in inventory is decreased.
E)The vendor's account is impacted.

Question

Quizplus · Accepted Answer

When a goods receipt is posted for raw materials on a consignment basis, the status of the materials is set to consignment stock (A), and the quantity of materials in inventory is increased (C). However, the inventory account and the vendor's account are not impacted because the materials are still owned by the vendor until they are consumed.

Which of the Following Occur When a Goods Receipt Is