Accounting for consignment Fill-in-the-blanks quiz
Posted in: Accounting for consignment (quizzes)
Read the whole text carefully and think the correct word that should fill in the blank space(s) and then confirm your answer by pressing the 'see answer' button. Don't press the 'see answer' button before reading the question text.
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facilitates business expension without much initial cost and additional on going expenses.
is a document which contains details about sales, expenses and consignee's commission.
An account sales is prepared and sent by the .
is a document which is prepared and sent by the consignor to consignee along with the goods.
account is used to compute profit or loss on consignment.
Consignment account is a account in nature.
expenses are included while computing the value of stock on consignment.
The stock on consignment is valued at cost or whichever is .
expenses are ignored while computing the value of stock on consignment
If cash sales are $25,000, credit sales are $75,000 and consignee's del credre commission is 10%, the amount of del creder commission will be .
The use of invoice price method helps keep the consignment profit .
In balance sheet, the balance of account is deducted from stock on consignment.
commission is allowed to consignee who gaurantees the payment in case a fails to pay.
commission is paid for promoting a new product in the market or acheiving a specific sales target.
When goods are returned by consignee, the consignment account is .
In consignment, the consignee works as consignor's .
In consignment, the loss is ignored.
A consignor prepares proforma invoice to show a profit of 20% on cost. If the invoice price of goods consigned is $150,000, the cost should be .
The expenses on return of goods by consignee to consignor are untimately born by the .
If invoice price method is adopted, the of excess price on goods sent is required to compute the correct .
The relationship between consignor and consignee is that of and .
In case of international consignment, the accompnied with the goods works as a prime document for custom clearance.
A loss caused by accident, fire or theft is known as loss.
loss is credited to account.
If commission is given, the consignee adjusts bad debts against account.
In the books of consignee, the cash paid for consignment related expenses and consignee's commission are both debited to .
No entry for bad debts is made in the books of if dell credere commission is allowed to consignee.
When consignee sells goods for cash, the account is debited and the account is credited in the books of consignee.
If del credere commission is allowed and the goods are sold on credit, the account is debited and the account is credited in the books of consignee.
If del credere commission is not allowed and the goods are sold on credit, the account is debited and the account is credited in the books of consignor.
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