Zimt AG wrote down the value of its inventory in 2017 and reversed the write-down in 2018.

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Zimt AG wrote down the value of its inventory in 2017 and reversed the write-down in 2018. Compared to the results the company would have reported if the write-down had never occurred, Zimt’s reported 2018:

A . profi t was overstated.

B . cash fl ow from operations was overstated.

C . year-end inventory balance was overstated.

Assume the companies use a periodic inventory system.

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International Financial Statement Analysis Workbook

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Question Posted: Mar 27, 2024 02:02 AM

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Zimt AG wrote down the value of its inventory in 2017 and reversed the write-down in 2018.

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A is correct Th e reversal of the writedown shifted co...View the full answer

International Financial Statement Analysis Workbook

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