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Commerce · Q206

Accounting

Graduate and Post Graduate · Commerce · question 206

Q206

NRV or net realizable value of inventory is the expected selling price or market value less

A.
Carry value of the inventory
B.
Expenses necessary to complete sale
Answer
C.
Cost of the stock
D.
Replacement cost

Answer: Option B

Solution

Answer: Option B
Solution:
NRV or net realizable value of inventory is the expected selling price or market value less Expenses necessary to complete sale. Net realizable value is generally equal to the selling price of the inventory goods less the selling costs (completion and disposal).