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 goods shipped to the consignor who sells the goods for the owner.D) Are not reported in the consignor's inventory since they do not have possession of the inventory.E) Are always paid for by the consignee when they take possession.

Question

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 goods shipped to the consignor who sells the goods for the owner.D)  Are not reported in the consignor's inventory since they do not have possession of the inventory.E)  Are always paid for by the consignee when they take possession.

Sarai Orellana · Accepted Answer

Final Answer : A, Explanation :  Goods on consignment are shipped by the owner (consignor) to the consignee, who then sells the goods on behalf of the owner. The consignee does not own the goods but acts as an agent for the consignor.

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