The net amount a firm would receive if it sold an asset or the net amount it would pay to settle a liability is referred to as:
A) current replacement cost
B) net realizable value
C) current cost
D) acquisition cost

Question

Quizplus · Accepted Answer

Net realizable value is the net amount a firm would receive after deducting any selling costs, such as commissions or transportation fees, from the sales price of an asset or the net amount it would pay to settle a liability. Current replacement cost is the amount it would cost to replace an asset with a similar one at the present time, which may not necessarily be the same as the net amount the firm would receive from selling the asset. Current cost is the cost of producing or acquiring an asset at the present time, which may not reflect changes in the market value of the asset. Acquisition cost is the cost the firm paid to acquire the asset and may not reflect current market conditions.

The Net Amount a Firm Would Receive If It Sold