In the case of goods delivered to a consignee under a consignment arrangement,

Multiple Choice

the consignor should not recognize revenue until the goods are transferred to a third party.

the cash received to date should be recognized by the consignor as deferred revenue until merchandise is delivered to the consignee.

revenue should be recognized when the consignor collects payment from the consignee.

the seller should recognize revenue although the goods have not yet been transferred to a third party.