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Some Firms That Dispose of Only a Small Part of Their

Question 66

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Some firms that dispose of only a small part of their total output by consignment shipments fail to make any distinction between consignment shipments and regular sales.Which of the following would suggest that goods have been shipped on consignment?


A) Numerous shipments of small quantities.
B) Numerous shipments of large quantities and few returns.
C) Large debits to accounts receivable followed by small periodic credits.
D) Large debits to accounts receivable followed by large periodic credits.

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