Which of the following statements does not accurately describe the lower of cost or market (LCM)valuation method?
A)The journal entry to write-down inventory decreases gross profit.
B)The journal entry to write-down inventory decreases current assets.
C)The journal entry to write-down inventory does not affect income from operations.
D)The journal entry to write-down inventory increases cost of goods sold.

Question

Quizplus · Accepted Answer

The journal entry increases cost of goods sold and therefore decreases income from operations. The journal entry also decreases inventory.

Which of the Following Statements Does Not Accurately Describe the Lower