If the Ball Corp.writes down its inventory,its:
A) cost of goods sold will decrease.
B) net income will increased.
C) its current assets will decreased.
D) its stockholders' equity will increase.

Question

Quizplus · Accepted Answer

When the Ball Corp. writes down its inventory, it means that the value of its inventory has decreased, and therefore, the value of its current assets will decrease. This is because inventory is included in the current assets of a company's balance sheet. Writing down inventory does not affect cost of goods sold, net income, or stockholders' equity directly.

If the Ball Corp.writes Down Its Inventory,its