Which statements is incorrect for lily ltd

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Question 1: Lily Ltd sells and delivers goods to Rose Ltd on 13 March. Both parties agree that Rose Ltd will hold the goods on consignment to be sold to third parties. Rose Ltd is not required to pay Lily Ltd for the goods until they are sold to a third party. Which of the following statements is incorrect?

Select one:

a. Lily Ltd does not recognise any revenue until Rose Ltd has on-sold goods to a third party.

b. Lily Ltd retains the risks and rewards of ownership of the goods after delivery to Rose Ltd.

c. Lily Ltd recognises revenue on 13 March for the sale of goods to Rose Ltd.

d. At the time of delivery of the goods to Rose Ltd there is no probability that future economic benefits will flow to Lily Ltd.

Reference no: EM132602322

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