If the Ball Corp.writes down its inventory,its:
A)cost of goods sold will decrease.
B)net income will increase.
C)current assets will decrease.
D)stockholders' equity will increase.

Question

Quizplus · Accepted Answer

When inventory is written down as a result of the lower of cost or market rule,Inventory,a current asset,decreases,and Cost of Goods Sold,an expense,increases.The increase in expenses will decrease net income and,as a result,stockholders' equity will decrease.

If the Ball Corp.writes Down Its Inventory,its