Inventory with a Value of $420 000 Was Written Down

question 25

Multiple Choice

Inventory with a value of $420 000 was written down to $250 000 in June 2019 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) None of the above

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Definitions:

Androgens

Hormones that play a key role in the development of male traits and reproductive activity; examples include testosterone and androstenedione.

Mineralocorticoids

A class of steroids, produced by the adrenal glands, that regulate electrolyte and water balance in the body.

Glucocorticoids

A class of steroid hormones that play a role in regulating metabolism, immune response, and stress within the body.

Hormone

Chemical messengers produced by glands in the body that regulate physiological processes and behavior.