CMA Foundation · Fundamentals of Financial and Cost Accounting · Consignment
Which statement about an account sales is correct?
An account sales is prepared by the consignee and sent to the consignor. It reports goods sold, expenses incurred, commission earned, amounts already remitted and the balance payable, so the consignor can record the consignment results.
- AIt is prepared by the consignor and sent to the consignee
- BIt is prepared by the consignee and sent to the consignor periodicallyCorrect
- CIt is a statement of the consignor's bank balance
- DIt is the invoice raised on the final customer by the consignor
Explanation
Account sales is a periodic statement the consignee prepares for the consignor showing sales, expenses incurred, commission, advances or remittances and the net amount due. The consignor does not prepare it, and it is not a customer invoice.
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