The Evidence Required for a Reversal of a Previous Inventory

question 117

Multiple Choice

The evidence required for a reversal of a previous inventory write down would be

• A) a decline in selling prices.
• B) an increase in selling prices.
• C) an increase in products/ merchandise sold.
• D) a decrease in products/ merchandise sold.

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Definitions:

Income Statement

The Income Statement, also known as a profit and loss statement, is a financial report that shows a company's revenues, expenses, and profits or losses over a specific period.

Unearned Fees

Income received by a company for services or goods that have yet to be provided or delivered.

Supplies Expense

The cost incurred from acquiring supplies used in the operation of a business, not directly tied to production.

Adjusted Trial Balance

A compilation of every account along with its adjusted balances, utilized for the creation of financial reports.