A Loss on the Write Down of Obsolete Inventory Should

question 119

Multiple Choice

A loss on the write down of obsolete inventory should be reported as

• A)"other expenses and losses."
• B)part of discontinued operations.
• C)an operating expense.
• D)an extraordinary item.

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation or owners' equity in property, or fairness and justice as applied in the legal system.

Unilateral Mistake

A contract law principle where an error made by one party does not affect their understanding of key terms or obligations, affecting the contract's enforceability.

Mutual Mistakes

A situation in a contract where all parties have a misunderstanding or incorrect belief about a basic assumption on which the contract is based.

Voidable

A term for an agreement or contract that may appear valid but can be legally voided by one of the parties.