Inventory with a Value of $300 000 Was Written Down

question 10

Multiple Choice

Inventory with a value of $300 000 was written down to $250 000 in June 2016 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.

---

Definitions:

Naïve Optimism

An overly positive outlook that fails to consider potential issues or obstacles, often based on simplistic assumptions.

Scientific Era

A period in history marked by significant advancements in scientific knowledge and its application, profoundly influencing society and technology.

Environmental Threats

are dangers that arise from environmental degradation or changes, posing risks to ecosystems, biodiversity, and human well-being.

Technological Imperialism

The dominance of technologically advanced countries in imposing their technologies and cultural values on less developed countries.