Company a Has Inventory at the End of the Year

question 141

Multiple Choice

Company A has inventory at the end of the year with a cost of $75,000. Under the LCM rules, the value of the inventory is $72,600.The journal entry to record the write-down to LCM will:

• A) increase cost of goods sold and increase ending inventory.
• B) increase cost of goods sold and decrease ending inventory.
• C) decrease cost of goods sold and decrease ending inventory.
• D) decrease cost of goods sold and increase ending inventory.

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Definitions:

External Locus of Control

The belief that one's outcomes are determined by external forces or luck rather than one's own actions.

Leadership Effectiveness

The degree to which a leader successfully achieves desired outcomes through the direction, coordination, and motivation of individuals or teams.

Achievement Style

A behavioral approach focused on setting and attaining high standards and goals, often characterized by perseverance and a strong drive for success.

Unclear and Ambiguous

Descriptions or statements that lack clarity and can be interpreted in multiple ways.