Which of the following statements does not accurately describe the effects of a write-down of inventory on December 31,2010 using the lower of cost or market (LCM)valuation method?
A)The 2010 gross profit decreases.
B)The 2011 cost of goods sold is effectively decreased if the inventory was sold during 2011.
C)The 2010 ending inventory is decreased.
D)The 2011 gross profit is not affected when the inventory was sold during 2011.

Question

Quizplus · Accepted Answer

The 2011 cost of goods sold is decreased because of the write-down of the inventory cost during 2010.

Which of the Following Statements Does Not Accurately Describe the Effects