Inventory with a Value of $300 000 Was Written Down

question 10

Multiple Choice

Inventory with a value of $300 000 was written down to $250 000 in June 2016 because of falling prices in the industry.This transaction will:

• A) decrease assets,profit and shareholders' equity.
• B) decrease assets and profit,but not shareholders' equity.
• C) decrease assets and shareholders' equity but not profit.
• D) decrease assets and decrease shareholders' equity.

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Definitions:

Tickets

Documents or electronic vouchers that grant the holder the right to admission to an event, transport service, or the like.

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in its price.

Electricity Consumption

The sum of electrical energy utilized by all end-users over a designated time frame.

Government

The governing body of a nation, state, or community, responsible for making and enforcing laws, policies, and managing public resources.