Which of the following terms depicts processing orders for goods that are stored by the seller, often, because the buyer is not ready or able to receive the goods at the time of the order?
A) Sham sales
B) Side agreements
C) Consignment sales
D) Bill-and-hold sales

Question

Quizplus · Accepted Answer

Bill-and-hold sales describe processing orders for goods that are stored by the seller because the buyer is not ready or able to receive the goods at the time of the order. This allows the seller to recognize revenue before the goods are actually shipped or delivered. Sham sales involve falsely reporting sales that never occurred, side agreements are agreements made outside of the official contract, and consignment sales involve selling goods on behalf of another party and earning a commission on the sale.

Which of the Following Terms Depicts Processing Orders for Goods