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Tpy6a [65]
3 years ago
8

Net realizable ballue can be defined as the?

Social Studies
1 answer:
VikaD [51]3 years ago
6 0
In Accounting, Net Realizable Value (NRV) is the method of evaluating the value or worth of an asset  held as inventory. This method is used avoid overstating or understating the value of an goods in inventory.

NRV is the result of deducting the costs incurred in selling the goods from its selling price. These selling costs are the cost incurred in production, completion, and disposal of the product.

This method is very important in accounting practices because it will reflect on the income statement which are public company papers subject to the governments' scrutiny.
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