Net Realizable Value Is

question 30

Multiple Choice

Net realizable value is

• A) original cost plus costs to complete and sell.
• B) selling price.
• C) original cost less costs to complete and sell.
• D) selling cost less costs to complete and sell.

Understand the significance of monitoring and managing days’ sales uncollected to assess liquidity and operational efficiency.

Explain the procedures for handling cash transactions and the importance of controls to prevent and detect errors or fraud.

Understand the concept and importance of the number of days' sales uncollected in managing accounts receivable.

Calculate the number of days' sales uncollected using the appropriate formula.

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Definitions:

Balanced Budget

A Balanced Budget occurs when total revenues equal total expenses within a specific period, indicating financial stability without surplus or deficit.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and progressive taxes, designed to automatically adjust in response to economic conditions and stabilize the economy.

Business Cycle

The economic fluctuations experienced over time, characterized by periods of expansion (growth) and contraction (recession) in economic activity.

Legislative Action

The process by which a legislative body takes official steps to introduce, amend, pass, or reject laws and regulations.