If Year- End Inventory Is Reduced from Cost to a Lower

question 81

Multiple Choice

If year- end inventory is reduced from cost to a lower replacement cost, which of the following accurately depicts the results?

• A)Cost of goods sold is increased and beginning inventory of the next period is decreased by the same amount.
• B)The capital account balance is increased and beginning inventory of the next period is reduced by the same amount.
• C)Cost of goods sold is reduced and beginning inventory of the next period is reduced by the same amount.
• D)Year- end inventory is reduced and cost of goods sold is reduced by the same amount.

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Definitions:

Psychological Disorders

Mental health conditions characterized by significant disturbances in thoughts, feelings, and behaviors.

DSM-5

DSM-5, the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a handbook for diagnosing mental disorders, published by the American Psychiatric Association.

Psychotherapist

A trained professional who employs psychological methods particularly in the treatment of mental illness, emotional challenges, and behavioral disturbances.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thoughts that are significantly disruptive to one’s personal functioning.