Firms should report a loss due to write-down of inventory in the cost of goods sold account on the income statement.

Name: Firms should report a loss due to write-down of inventory in the cost of goods sold account on the income statement.
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Question

Quizplus · Accepted Answer

A write-down of inventory should be reported as a separate line item or included in the operating expenses, not in the cost of goods sold, to accurately reflect the financial impact on the income statement.

Firms Should Report a Loss Due to Write-Down of Inventory