Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owning, operating, and selling it?
Rationale for Correct Answer:Net realizable value (NRV) is the estimated selling price of an asset in the ordinary course of business, minus any costs of completion, disposal, or transportation. This is often applied in valuing accounts receivable and inventory.
Analysis of Incorrect Options:
B. Going concern – Assumption of business continuity, not asset valuation.
C. Cost – Historical cost, not future realizable value.
D. Fair value – Current market-based measure, not net proceeds after costs.
Key Concept:Net realizable value — valuation method for receivables and inventory.
Chosen Answer:
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