Popson Inc.incurred a material loss due to the write-down of inventory.This loss should be reported as:
A)Other revenues.
B)A loss from discontinued operations.
C)Other expenses.

Question

Quizplus · Accepted Answer

The loss due to write-down of inventory should be reported as an expense under "Other expenses" on the income statement. This expense reflects the decrease in the value of inventory and is typically included in the cost of goods sold or operating expenses. It is not a revenue or a loss from discontinued operations.