Inventory with a value of $300 000 was written down to $250 000 in June 2012 because of falling prices in the industry.This transaction will:

Name: Inventory with a value of $300 000 was written down to $250 000 in June 2012 because of falling prices in the industry.This transaction will:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The write-down of inventory decreases the value of assets on the balance sheet. It also reduces profit because the write-down is recognized as an expense, which in turn decreases shareholders' equity.

Inventory with a Value of $300 000 Was Written Down