Question

Goods held on consignment are Select one: a. included as part of no one's ending inventory. b. included in the consignee's ending inventory. c. kept for sale on the premises of the consignor. d. never owned by the consignee.

Answer 1

Answer:

d. never owned by the consignee.

Explanation:

The consignor is the business that gives merchandise to the consignee so that it can sell it. The consignor is the owner of the merchandise that is given in consignment, not the consignee. This merchandise must be reported in the consignor merchandise inventory in the balance until it is sold. Once it is sold, an accounts receivable is created.