Consignment Account - Meaning/Definition - SS3 Accounting Past Questions and Answers - page 1
What is a consignment account?
An account used to store personal items
An account used to sell goods on behalf of another party
An account used to receive commission payments
Share this question
Who retains ownership of the goods in a consignment agreement?
The consignor
The consignee
Both the consignor and the consignee
Share this question
What is the role of the consignee in a consignment agreement?
To sell the goods on behalf of the consignor
To purchase the goods from the consignor
To provide storage space for the consignor's goods
Share this question
What is the commission paid to the consignor based on?
The cost of the goods
The sales price of the goods
The amount of time the goods were held in inventory
Share this question
In which industry are consignment accounts commonly used?
Hospitality
Manufacturing
Retail
Share this question
What is the difference between a consignor and a consignee in a consignment agreement?
Share this question
Why might a manufacturer or distributor use a consignment account to sell their products?
Share this question