Under a consignment sales agreement, the goods are in the physical possession of the consignee but remain the property of the consignor and are included in the consignor's inventory. Thus, unsold consigned goods should be included in inventory at cost and not in receivables at their sales price.

The CPA Financial Accounting and Reporting (FAR) section covers US GAAP, IFRS, and governmental accounting, focusing on financial statement preparation, balance sheet accounts, and complex transactions.

Key concepts include revenue recognition (ASC 606), leases (ASC 842), business combinations, bonds, inventory, and governmental accounting, with a 50/50 mix of MCQs and simulations.