In GAAP, the terms "net realizable value" and "fair value" mean the same thing.

Question

Quizplus · Accepted Answer

Net realizable value and fair value are not the same thing in GAAP. Net realizable value refers to the estimated selling price of an asset less the estimated costs of completion, disposal, and transportation, while fair value refers to the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.

In GAAP, the Terms "Net Realizable Value" and "Fair Value