Explanation:

• Option A (Activity ratios): Correct. Activity ratios, such as inventory turnover and total asset turnover, are positively affected by an inventory write-down because the asset base (denominator) is reduced, leading to higher turnover ratios.

• Option B (Liquidity ratios): Incorrect. An inventory write-down reduces the carrying amount of inventory on the balance sheet, negatively impacting profitability, liquidity, and solvency ratios.

• Option C (Solvency ratios): Incorrect. Similar to liquidity ratios, solvency ratios are adversely affected by an inventory write-down due to the reduction in both profit and the carrying amount of inventory.

This question aligns with the Financial Statement Analysis topic, specifically addressing the implications of inventory measurement at the lower of cost and net realizable value on financial statements and ratios.