When portion of inventory has been pledge as security for s loan

When portion of inventory has been pledge as security for s loan





A. The value of the inventory pledged should be deducted from the debt
B. An equal amount of retained earnings should be appropriated
C. The fact should be disclosed but the amount if current assets shoukd nit be affected
D. The cost of the pledge inventory should be transferred from current asset to noncurrent asset



Answer: C. The fact should be disclosed but the amount if current assets shoukd nit be affected


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