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

question 80

Multiple Choice

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

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

---

Definitions:

Primary Aging

The gradual, inevitable process of bodily deterioration that occurs throughout life, independent of external factors.

Age-related Changes

Physical, cognitive, and emotional transformations that occur as a person moves through different stages of life.

Irreversible Changes

Refers to changes that cannot be undone or reverted to their original state.

Primary Aging

The natural, biological aging process that is genetically programmed and unavoidable, affecting all individuals as they grow older.