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Accountants use net relizable value in evaluation; as it is more prudent, it takes into account the depreciation of an asset. This gives a more realistic value and is a better measure of an asset.
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How would you define net realizable value?
Net realizable value. The amount a firm can collect in cash by selling an item, less the costs (such as commissions and delivery costs) of disposition.
Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet?
Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet?
What is Expected sales price less selling cost?
Its the net realizable value
How would you define a current cost?
Current cost. Replacement cost or net realizable value.
How should damaged merchandise that can be sold only at prices below cost be valued at?
Net realizable value
What is the best way that damaged merchandise that can be sold only at prices below cost should be valued at?
Net Realizable Value
Methods of allocating joint production cost to joint products?
Following are methods 1 - Splitoff point method 2 - Net realizable value method
What is the separate valuation principle in Accounting?
The Separate Valuation Principle states that inventory should be valued at the lower of cost (costs minus additional costs to make item saleable ,eg.conversion costs,transportation cost etc.) and its Net Realizable value.
Is a chartered accountant is eligible for net exam?
Yes.... UGC-NET is compulsory for Chatered Accountants...Exemption is available only for PH.D....
What is the rationale for why plant assets are not reported at liquidation value?
Conservatism If a situation arises where there are two acceptable alternatives for reporting an item, conservatism directs the accountant to choose the alternative that will result in less net income and/or less asset amount. Conservatism helps the accountant to "break a tie." It does not direct accountants to be conservative. Accountants are expected to be unbiased and objective.
If you cash in a universal life policy do you receive the Net Policy Value or Net Cash Surrender Value?
Typically it is called "Net Cash Surrender Value". This is the amount of cash value in the policy accumulation account minus any outstanding loans etc. But it is typically referred to as "Net surrender Value" or "Net Cash Surrender Value". Get a good agent and he can explain.
How do you convert gross calorific value to net calorific value?
Gross calorific value may be converted to net calorific value by using the following equation- Net calorific value = Gross calorific value - (10.02 x Percent Moisture)
