1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Xelga [282]
3 years ago
13

Angus Company agreed to sell goods for Longhorn Company on consignment, but wasn't willing to take ownership of the goods in cas

e they were difficult to sell. Which of the following statements is true?
A. Angus owns the inventory and should report It on its balance snoot.
B. Long hum owns the inventory but should not report it on its balance sheet because Angus actually holds the inventory
C. Angus owns the inventory since possession is nineteenths of the law. but should not report it on its balance sheet.
D. Longhorn owns the inventory and should report it on its balance sheet.
Business
1 answer:
vladimir2022 [97]3 years ago
3 0

Answer: D. Longhorn owns the inventory and should report it on its balance sheet.

Explanation:

Goods to be sold on consignment for a company means a company is selling goods for another company and will be paid for their services.

In that case, the company being sold for will retain the ownership of the goods because the company that is selling it for them is simply providing a service.

Angus in this scenario are simply holding the goods to sell it and so do not own the goods. Longhorn should therefore record it in their own books as inventory.

You might be interested in
Why is there an inherent conflict between planning and control uses of budgets?
IrinaVladis [17]

Answer:

The main conflict that results between planning and control use of budgets is that managers might place their own personal interests before the interests of the company. This might result in budgets that are easily achievable (resulting in bonuses) or shifting income from one period to another in order to achieve certain budgets that will result in bonuses.

I will use a real life example that happened to me to explain this. I worked as a B2B sales representative for a large corporation (we were only 2 B2B salespeople + 1 manager) and when sales were slowing down, upper management would set up bonuses for achieving certain sales goals. The problem was that intentionally certain large sales that required management's approval were delayed and total sales would fall. Then suddenly the bonus show sup and all the large sales were approved and in two weeks the sales goals were achieved. Since B2B sales are not about selling to a lot of customers, but instead selling to the right customers a lot of products, a couple of delayed big sales made a huge difference and a 1% bonus meant changing your old car for a new one.

3 0
3 years ago
A manufacturer of disposable foam products entered into a written contract with a take-out restaurant to sell them 5,000 disposa
saveliy_v [14]

Answer:

Option B

Explanation:

Since the contract did not mentioned any thing about the retuning of containers that were not defective, it becomes the obligation of the buyer to pay the final delivery amount on the basis of Good-faith modification.

Hence, option B is correct

3 0
2 years ago
All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one
Romashka [77]

Answer:

A.

The output will rise by more than it did when the previous unit was added.

Explanation:

7 0
2 years ago
On August 5, 2021, Blossom Furniture shipped 50 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set
Gennadij [26K]

Answer:

$15,960

Explanation:

The total profit on units sold for the consignor:

= Sales Value - Cost of Goods Sold - Shipping Expenses - Commission - Advertising Expenses - Installation and setup costs

= (40 × $720) - (40 × $220) - [$1,850 × (40/50)] - ($28,800 × 5%) - $470 - $650

= $28,800 - $8,800 - $1,480 - $1,440 - $470 - $650

= $15,960

5 0
3 years ago
The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicate
Nikitich [7]

Answer: $164,300

Explanation:

Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.

= Beginning dividends payable + Dividends for the year - Ending dividends

= 43,200 + 160,000 - 38,900

= $164,300

8 0
3 years ago
Other questions:
  • Bronco, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B
    7·1 answer
  • What type of recycled material is there the biggest demand for?
    15·1 answer
  • Problem 1: On April 01, 2016 Anees started business with Rs. 100,000 and other transactions for the month are: 2. Purchase Furni
    15·1 answer
  • Price elasticity of supply is used to gauge
    6·1 answer
  • A variable cost a. is synonymous with labor costs b. changes in the same direction and in direct proportion to changes in operat
    12·1 answer
  • Catherine sat down with all of her income details from the past year to calculate the total income she had in that period. After
    13·1 answer
  • Looking for cost savings in administrative areas, the vice-president for human resources at McMahon Corporation asked his assist
    8·1 answer
  • Boxer Industries worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's
    6·1 answer
  • In a perfectly competitive industry rev: 06_26_2018 Multiple Choice economic profits may exist in the long run but not in the sh
    11·1 answer
  • the selling price of a product is $20 and the markup is $4 what percentage of the selling price does the markup represent a 20%
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!