The evidence required for a reversal of a previous inventory write down would be
A) a decline in selling prices.
B) an increase in selling prices.
C) an increase in products/ merchandise sold.
D) a decrease in products/ merchandise sold.

Question

Quizplus · Accepted Answer

An increase in selling prices would provide evidence for a reversal of a previous inventory write-down because it indicates that the net realizable value of the inventory has increased, potentially making the previous write-down no longer necessary.

The Evidence Required for a Reversal of a Previous Inventory