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NEW QUESTION: 1
DEF is the consignee for 1.000 units of product X for ABC Company. ABC should recognize the revenue from these 1,000 units when:
A. ABC ships the goods to DEF.
B. DEF sells the goods and informs ABC of the sale
C. The agreement between DEF and ABC is signed.
D. DEF receives the goods from AB
Answer: B
Explanation:
Under a consignment arrangement, the consignor ships merchandise to the consignee who acts as agent for the consignor in selling the goods are in the physical possession of the consignee but remain the property of the consignor arid are included in the consignor's inventory. Revenue and the related cost of goods sold from these consigned goods should only be recognized by the consignor when the merchandise is sold and delivered to the final customer. Accordingly, recognition occurs when notification is received that the consignee has sold the goods. Only then are the recognition occurs when notification is received that the consignee has the goods. Only then are the recognition criteria for a sale of goods satisfied the enterprise has transferred the significant risks and reward of ownership, the enterprise has neither continuing managerial involvement to an extent associated with ownership nor effective control over the goods, the amount can be reliably measured, it is probably that the economic benefits with flow to the enterprise, and transactional costs can be reliably measured.

NEW QUESTION: 2
While entering a cascade receipt, you find that the Cascade button is disabled in the Receipts window. Which option best describes the reason for this?
A. You disabled Allow Cascade Transactions in the Purchase Order Shipments window.
B. You specified Receipt Routing as Direct Delivery for this supplier.
C. The receipt is for a Return Material Authorization (RMA).
D. The receipt is for a drop-shipped item.
E. You specified a purchase order number instead of a supplier and an item in the Find Expected Receipts window.
Answer: E

NEW QUESTION: 3

A. Option B
B. Option C
C. Option D
D. Option E
E. Option A
Answer: A