Question 12
Purchase and Sale of GoodsA consignment note is used when
- A.goods are wrapped and labelled for easy identification
- B.goods are despatched to agents through transporters
- C.damaged goods are being returned
- D.there is over-invoicing
Show the answer and explanation
Answer: B (goods are despatched to agents through transporters)
Explanation
A consignment note goes with goods handed to a carrier (rail or road) for delivery, giving details of the goods and the consignee.