If a company is not a going concern, then its assets will be presented at their net realizable value.

Question

Quizplus · Accepted Answer

When a company is not considered a going concern, it means it is not expected to continue its operations in the foreseeable future. Therefore, its assets are presented at their net realizable value, which is the estimated selling price in the ordinary course of business minus any costs necessary to make the sale, reflecting the value the company expects to realize from their sale.

If a Company Is Not a Going Concern, Then Its