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If a Company Is Using the Lower-Of-Cost-Or-Market Rule and a Write-Down

Question 132

Multiple Choice

If a company is using the lower-of-cost-or-market rule and a write-down is required, how will that write-down affect the company's financial statements?


A) Net income will increase.
B) Gross margin will decrease.
C) Total assets will decrease.
D) Net income and total assets will both decrease.

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