Question
At the end of a reporting period, a company determines that its ending inventory has a cost of $300,000 and a net realizable value of
At the end of a reporting period, a company 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?
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Decrease net income.
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Decrease total assets.
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Decrease total assets and net income.
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Increase retained earnings.
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann
1st Canadian Edition
1118037960, 9781118037966
