Account Sales includes:
a. Sales made
b. Payable by consignee to consignor
c. Commission earned by consignee
d. All of above.
D
The risk of stock on consignment lies with
a. Consignor
b. Consignee
c. Buyer
d. Seller
A
In the books of the consignor, the balance of the consigned goods inventory account would be shown:
a. As an asset in the statement of financial position of the consignee.
b. As liability in the statement of financial position of the consignee.
c. As an asset in the statement of financial position of the consignor.
d. As liability in the statement of financial position of the consignor.
C
The person to whom goods are sent for sale on commission is known as:
a. Merchant
b. Wholesaler
c. Retailer
d. Consignee
D
The sales revenue and cost of goods sold should be recognized by the consignor:
a. When the consignor received the notification from consignee that the merchandise have been sold to a third party (customer).
b. When the cash is received from the consignee
c. When the goods are shipped to the consignee
d. When the goods are shipped by the consignee to the third party (customer).
A
The following items are found in the account sales, except:
a. Expenses of the consignor
b. Total sales
c. Amount due to consignor
d. Commission of consignee
A
It is the statement sent by the consignee to the consignor
a. Billing
b. Purchase order
c. Invoice
d. Account Sales
D
On the transfer of consigned goods by the consignor to consignee, the journal entry in the books of the consignee will be a credit of:
a. Inventory received from the consignor
b. Inventory on consignment
c. Memo Entry
d. Consignee Payable
C
Goods on consignment should be part of the inventory of:
a. Consignee
b. Both consignee and consignor
c. Consignor
d. Neither consignor nor consignee
C
A shipment of inventory by the manufacturer or wholesaler to a dealer to be sold by him on a commission basis on the risk and account of the manufacturer or wholesaler is called:
a. Arrangement
b. Consignment
c. Contract
d. Agreement
B
The journal entry to record the consignor expenses:
a. Inventory on consignment
Cash
b. Inventory on consignment
Consignee payable
c. Inventory on consignment
Consignee receivable
d. Consignee Payable
Consignor Receivable
A
The person who sends the goods to the agent to be sold by him on commission is known as:
a. Consignee
b. Seller
c. Consignor
d. Buyer
C
The consignee is the:
a. Principal
b. Agent
c. Buyer
d. Seller
B
The Account Sale is submitted by:
a. Consignor
b. Consignee
c. Debtor
d. Principal
B
In the books of the consignee, the sale of goods is credited to:
a. Consignee Receivable
b. Consignor Receivable
c. Consignee Payable
d. Consignor Payable
D
A commission of payable to the consignee by consignor is for:
a. Loyalty payment
b. Protection of agent for bad debts
c. Making sales above a specific price
d. Patronage
C
A del credere commission is a commission payable to consignee
by consignor for:
a. Protecting himself from bad debts
b. For making sales above sale price
c. Loyalty payment
d. Patronage
A
The commission of the consignee is based on:
a. Cash sales
b. Credit Sales
c. Both Cash and Credit Sales
d. Total collections
C
The account sales shows:
a. The net sales effected by consignee
b. The net amount due from consignor to consignee by way of commission
c. The net amount due from consignee to consignor
d. None of the choice
C
A proforma invoice is sent by:
a. Consignee to consignor
b. Debtor to consignee
c. Consignor to consignee
d. Debtor to consignor
C
The use of the net method of recognizing revenue by an agent
a. Is the correct method in a principal-agent relationship
b. Could result in an overstatement of gent’s revenue
c. Could result in an understatement of agent’s revenue
d. Is appropriate as long as both revenue and costs are included
A
The role of the agent in a principal-agent relationship is to:
a. Develop and maintain goodwill of the principal’s customers
b. Market the principal goods and services to prospective customers
c. Provide goods or services for a customer
d. Arrange for the principal to provide goods or services to customers
D
The consignee provided an advance payment to the consignor as a guarantee from the agreement. The consignor shipped the inventory to the consignee. The consignor paid the insurance cost on the goods shipped to the insurance cost as:
Insurance Cost I Advance Payment
a. Expense, Liability
b. Prepaid Insurance , Receivable
c. Inventory, Receivable
d. Inventory, Liability
D
