The net realizable value approach is normally used when the NRV is expected to be
$\text {\underline{ insigificant} }$ $\text {\underline{ significant} }$

A)yes yes
B)no yes
C)no no
D)yes no

Question

The net realizable value approach is normally used when the NRV is expected to be
$\text {\underline{ insigificant} }$                                            $\text {\underline{ significant} }$

A)yes yes
B)no yes
C)no no
D)yes no

Quizplus · Accepted Answer

The net realizable value (NRV) approach is normally used when the NRV is expected to be significant, not insignificant. This is because NRV is a method used to evaluate the value of an asset in terms of the price it can fetch in the market minus the costs of selling or disposing of it, which is particularly relevant when the value is significant.

The Net Realizable Value Approach Is Normally Used When the NRV