Which of the Following Statements Does Not Accurately Describe the Effects

question 69

Multiple Choice

Which of the following statements does not accurately describe the effects of a write-down of inventory on December 31,2018 using the lower of cost or net realizable value valuation method?

• A)The 2018 gross profit decreases.
• B)The 2019 cost of goods sold is effectively decreased if the inventory is sold during 2019.
• C)The 2018 ending inventory is decreased.
• D)The 2019 gross profit is not affected if the inventory is sold during 2019.

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