Which of the Following Statements Does Not Accurately Describe the Effects

question 109

Multiple Choice

Which of the following statements does not accurately describe the effects of a write-down of inventory on December 31,2010 using the lower of cost or market (LCM) valuation method?

• A)The 2010 gross profit decreases.
• B)The 2011 cost of goods sold is effectively decreased if the inventory was sold during 2011.
• C)The 2010 ending inventory is decreased.
• D)The 2011 gross profit is not affected when the inventory was sold during 2011.

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Definitions:

Pigeon

A bird of the family Columbidae, known for its ability to find its way home over long distances and commonly used in research in psychology.

Peck

A brief, pointed contact or strike, typically referring to the action of a bird using its beak.

Primary Reinforcer

A stimulus that satisfies a basic biological need and inherently reinforces a behavior without the need for learning.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.