ACC 304 All Assignments ACC 304 All Assignments | Page 74

d. Cost of goods sold is determined as the amount of purchases less
the change in inventory.
26. How is a significant amount of consignment inventory reported
in the balance sheet?
a. The inventory is reported separately on the consignor's balance
sheet.
b. The inventory is combined with other inventory on the consignor's
balance sheet.
c. The inventory is reported separately on the consignee's balance
sheet.
d. The inventory is combined with other inventory on the consignee's
balance sheet.
27. Where should goods in transit that were recently purchased
f.o.b. destination be included on the balance sheet?