Asked by Jibreel Ahmad on Apr 28, 2024
Verified
Net realizable value equals the sales price minus reasonable further costs to both make the item ready to sell and to sell it.
Net Realizable Value
Net Realizable Value is the estimated selling price of goods, minus the cost of their sale or disposal, representing the actual value of assets in terms of cash.
- Understand the importance of valuing accounts receivable at their net realizable value.
Verified Answer
DJ
Dillon JohnsonMay 01, 2024
Final Answer :
True
Explanation :
Net realizable value is calculated by subtracting the costs necessary to prepare the product for sale and to sell it from the sales price. Hence, the statement is true.
Learning Objectives
- Understand the importance of valuing accounts receivable at their net realizable value.
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