Multiple Choice
At the end of the Year 2 accounting period,DeYoung Company determined that the market value of its inventory was $79,800.The historical cost of this inventory was $81,400.DeFazio uses the perpetual inventory method.Assuming the amount is material,how will the entry necessary to reduce the inventory to the lower of cost or market affect the elements of the company's financial statements?
A) Decrease total assets and gross margin
B) Decrease total assets and net income
C) Increase total assets and net income
D) Decrease total assets,gross margin,and net income
Correct Answer:
Verified
Correct Answer:
Verified
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