'Net Realisable Value' of Inventory Is Defined as the Net

question 28

Multiple Choice

'Net realisable value' of inventory is defined as the net amount that an entity expects to realise from the sale of the inventory:

• A) in the ordinary course of operations less estimated costs of completion and costs necessary to make the sale;
• B) plus the estimated costs of completion plus the estimated costs necessary to make the sale;
• C) in a forced sale;
• D) plus the estimated costs of completion.

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Definitions:

Redox Reaction

A type of chemical reaction that involves a transfer of electrons between two species.

Oxidation Number

A figure indicating the number of electrons lost or gained by an atom in a compound or ion.

Oxygen

A chemical element with symbol O and atomic number 8, essential for life as part of the process of respiration.

Electrons

Subatomic particles with a negative charge, orbiting the nucleus of an atom and involved in chemical bonds and electrical conductivity.