Under the Net Realizable Value Approach,no Value Is Recognized for By-Products

question 63

True/False

Under the net realizable value approach,no value is recognized for by-products or scrap until they are actually sold.

---

Definitions:

Plant Assets

Long-term tangible assets that are used in the operation of a business and are not intended for resale.

Depreciation Expense

Apportioning a physical asset’s cost over its estimated useful life.

Straight-Line Method

The straight-line method is a technique of allocating an asset's cost evenly throughout its useful life, commonly used for depreciation and amortization calculations.

Salvage Value

The approximated market price of an asset upon completing its useful life.