At the End of a Reporting Period, Gamble Corporation Determines

question 31

Multiple Choice

At the end of a reporting period, Gamble Corporation determines that its ending inventory has a cost of $300,000 and a market value of $230,000. What would be the effect(s) of the adjustment to write down inventory to market value?

• A) Decrease total assets.
• B) Decrease net income.
• C) Increase retained earnings.
• D) a and b.

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Definitions:

Hydrocarbon Chains

Molecules composed of hydrogen and carbon atoms arranged in a chain, fundamental to organic chemistry and fossil fuels.

Metamorphic Temperatures

The range of temperatures within the Earth's crust at which rock transforms in structure or mineral composition without melting.

Organic Material

Matter derived from living organisms, typically consisting of carbon-based compounds.

Breccia Pipe

A pipe- or cone-shaped structure filled with breccia; mostly formed by cave collapse, but can also form by igneous and hydrothermal processes.