Which of the bases for reporting monetary amounts uses what the company would get for the asset if it had to dispose of it in an orderly sale?
A) Fair value
B) Current cost
C) Present value
D) Net Realizable value

Question

Quizplus · Accepted Answer

Net Realizable Value (NRV) is the estimated selling price in the ordinary course of business minus the estimated costs of completion and the estimated costs necessary to make the sale. This concept aligns with the description of what a company would get for the asset if it had to dispose of it in an orderly sale.

Which of the Bases for Reporting Monetary Amounts Uses What