Question

In accounting for inventory, net realizable value equals:

1) Cost of goods sold
2) Selling price minus any selling costs
3) Purchase price
4) Market value

Answer 1

"The net realizable value of inventory equals the selling price minus any selling costs."

Step-by-step explanation:

The net realizable value of inventory equals the Selling price minus any selling costs. Net realizable value is the estimated selling price of the inventory, minus any associated selling expenses that will be incurred to make the sale. It represents the amount the inventory is expected to be sold for, after deducting any costs needed to sell it.