How is a significant amount of consignment inventory reported in the statement of financial position?
A) The inventory is reported separately on the consignor's statement of financial position.
B) The inventory is combined with other inventory on the consignor's statement of financial position.
C) The inventory is reported separately on the consignee's statement of financial position.
D) The inventory is combined with other inventory on the consignee's statement of financial position.

Question

Quizplus · Accepted Answer

Consignment inventory remains the property of the consignor until sold by the consignee. Therefore, it is reported on the consignor's statement of financial position, often separately to distinguish it from other types of inventory.

How Is a Significant Amount of Consignment Inventory Reported in the Statement