At the End of a Reporting Period,Gamble Corporation Determines That

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 net realizable value of $230,000.What would be the effect(s) of the adjustment to write down inventory to net realizable value?

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

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Definitions:

Proxy Fight

A battle for control over a company, where opposing parties attempt to win the votes of shareholders to effect change in the company's board of directors.

Incompatible Operations

Processes or activities that cannot be efficiently executed together due to differing requirements or objectives.

Spinoff

A type of corporate restructuring where a division or subsidiary is separated from the parent company to form a new independent entity.

Subsidiary Divestiture

The process of a parent company selling off or otherwise disposing of a part of its business operations, often a subsidiary, division, or asset.