Net Realizable Value (NRV) Describes the Estimated Amount of a Company's

question 39

True/False

Net realizable value (NRV) describes the estimated amount of a company's expected cost of uncollectible accounts.

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Definitions:

Profit

The financial gain realized when the amount earned from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Pre-Acquisition Entry

An accounting entry made to record the assets and liabilities of a company before it is officially acquired by another entity.

Direct Non-Controlling Interest

A portion of equity interest in a subsidiary not directly held by the parent company but rather through a direct subsidiary.

Indirect NCI

Stands for Indirect Non-Controlling Interest, which refers to the ownership interest in a company held by investors that do not have control or significant influence over the company.