The most likely effect of a write-down of inventory to net realizable on a firm's total asset turnover is:

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Business

Aiyana Schwartz

31 July, 16:03

The most likely effect of a write-down of inventory to net realizable on a firm's total asset turnover is:

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Mooney · Answer 1

The most likely effect of a write-down of inventory to net realizable on a firm's total asset turnover is an increase.

A write-down of inventory to net realizable value is typically recognized as an increase in cost of goods sold in the period of the write-down, according the inventory equation:

ending inv entory = beginning inventory + purchases - cost of goods sold