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
Who retains ownership of the goods in a consignment agreement?
The consignor
The consignee
Both the consignor and the consignee
What is the role of the consignee in a consignment agreement?
To sell the goods on behalf of the consignor
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To purchase the goods from the consignor
To provide storage space for the consignor's goods
What is the commission paid to the consignor based on?
The cost of the goods
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The sales price of the goods
The amount of time the goods were held in inventory
In which industry are consignment accounts commonly used?
HospitalityÂ
Manufacturing
RetailÂ
What is the difference between a consignor and a consignee in a consignment agreement?
Why might a manufacturer or distributor use a consignment account to sell their products?
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