Inventory with a Value of $300 000 Was Written Down

question 8

Multiple Choice

Inventory with a value of $300 000 was written down to $250 000 in June 2012 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:

Arrange All

A feature in many software applications that organizes open windows or documents so they are all visible on the screen simultaneously.

View Tab

A feature in many software applications that provides different options or commands for viewing and navigating the content or document.

Transparency

The characteristic of an object or image that allows light to pass through it, resulting in it being see-through or translucent.

Dimensions

Refers to the measurable attributes of objects, such as height, width, and depth, often used in various scientific, engineering, and design fields.