The Cost of Goods Sold Account Is Credited to Write

question 142

True/False

The Cost of Goods Sold account is credited to write down the inventory as required by the lower-of-cost-or-market rule.

---

Definitions:

Condition Precedent

A contractual clause requiring certain conditions to be fulfilled before a contract becomes effective or an obligation is to be performed.

Condition Concurrent

In contracts, conditions that are to happen or be performed at the same time by both parties involved in the agreement.

Conditions Subsequent

Clauses in a contract that, if met, bring about the termination of the contract's obligations for one or more parties.

Commercially Impracticable

A condition under the Uniform Commercial Code where performance of a contract is made excessively burdensome or expensive due to unforeseen events.