What is net realizable value, Accounting Basics

Assignment Help:

Q. What is Net realizable value?

Companies must not carry goods in inventory at more than their net realizable value. Net realizable value is the approximate selling price of an item less the estimated costs that the company incurs in preparing the item for sale and selling it. Obsolete, Damaged or shopworn goods often have a net realizable value lower than their historical cost and must be written down to their net realizable value. But goods don't have to be obsolete, damaged or shopworn for this situation to occur.

Technological changes as well as increased competition have caused significant reductions in selling prices for such products as DVD players, computers, TVs and digital cameras.


Related Discussions:- What is net realizable value

Error cause a trial balance, Which error will cause a trial balance not to ...

Which error will cause a trial balance not to balance? A an invoice entered as a credit note on original input. B a journal entry that does not balance. C a transaction entere

Stocks, Please help journalize: -On January 1, 2017 Harmony issued 1,500 sh...

Please help journalize: -On January 1, 2017 Harmony issued 1,500 shares of $22 par, 8% preferred stock for $43,700. -On January 1, 2017 Harmony also issued 2,000 shares of common s

What is deferred profit, A portion of company profits allocated by an emplo...

A portion of company profits allocated by an employer, in good years, to an employee's trust.Contributions on behalf of every employee are expressed as a percentage of salary with

Advantages and disadvantages of lifo, Q. Show Advantages and disadvantages ...

Q. Show Advantages and disadvantages of LIFO? The advantages of the LIFO method are based on the fact that prices have risen almost constantly for decades. LIFO supporters clai

Career as an accounting professor, Do you enjoy college life? Do you enjoy ...

Do you enjoy college life? Do you enjoy teaching others? If therefore you might want to consider a career as a college professor. Even though a position as a college professor may

Calculate current ratio, Compute each of the following amounts Company repo...

Compute each of the following amounts Company reported current assets of $80,000, non-current assets of $350,000, current liabilites of $32,000 and long term liabilities of $120,00

Limitations of funds flow statement, Limitations of Funds Flow Statement : ...

Limitations of Funds Flow Statement : despite the a variety of uses of the announcement, it has convinced problems also.  They consist of the subsequent i) It cannot substitute

Illustrate about corporation, Q. Illustrate about corporation? A corpor...

Q. Illustrate about corporation? A corporation is an incorporated business under the laws of a state and owned by a few stockholders or thousands of stockholders. Approximately

Define operating expenses, Q. Define Operating expenses? Operating expe...

Q. Define Operating expenses? Operating expenses for a merchandising company are those expenses other than cost of goods sold incurred in the usual business functions of a comp

The accounting records of nu-tonics inc., The accounting records of Nu-toni...

The accounting records of Nu-tonics Inc., include the following information for the year ended December 31, 2013:  Materials Inventory as at 1 January 2013 $ 20,000  Materials

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd