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:

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuing company's equity at certain times during its life.

Contract Rate

A predetermined fixed rate in a contract used to calculate payments, often found in finance agreements.

Effective Rate

The actual interest rate an investor receives or pays on a loan or investment, taking into account the compounding of interest.

Callable Bond

A type of bond that can be redeemed by the issuer before its maturity date at a predetermined call price.