Which of the following statements is true regarding consignment sales?

The statement regarding consignment sales that is true is that the dealer must hold all funds from successful sales. In a consignment arrangement, the dealer acts as an intermediary who sells goods on behalf of the owner (the consignor). When the sale is completed, the dealer is responsible for collecting the full sales price and holding the funds until the consignor is paid their agreed share. This practice ensures transparency and adherence to proper financial management, ensuring that consignors receive their due payment promptly after the sale.

In contrast, a finalized sale without a signed contract would undermine the clarity and enforceability of the agreement, which is typically essential in consignment transactions. Additionally, consignors are generally entitled to fees or a percentage of the sale proceeds, as that is part of the agreement for the sale of their items. The dealer's fee should also be established and agreed upon beforehand to avoid disputes after the sale, ensuring that both parties have a clear understanding of their financial arrangements from the start.