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LSDefine

Simple English definitions for legal terms

net realizable value

Read a random definition: public controversy

A quick definition of net realizable value:

Net Realizable Value: Net Realizable Value is a term used in accounting to determine the expected cash amount from the collection of customer balances or the selling price of inventory after completion and disposal costs are deducted. It is also an accounting method that considers the value of scrap or by-products as a reduction in the cost of primary products.

A more thorough explanation:

Definition: Net realizable value refers to the amount of cash that a company expects to receive from the sale of its inventory or the collection of its accounts receivable. It is calculated by subtracting any costs associated with completing and disposing of the inventory or collecting the receivables from the selling price.

Examples:

  • Accounts Receivable: A company has $10,000 in accounts receivable from its customers. After reviewing the accounts, the company estimates that it will only be able to collect $9,000. Therefore, the net realizable value of the accounts receivable is $9,000.
  • Inventory: A company has 100 units of a product in inventory. The selling price of each unit is $50. However, it will cost the company $5 per unit to complete and dispose of the inventory. Therefore, the net realizable value of the inventory is $45 per unit.

These examples illustrate how net realizable value is calculated by subtracting any costs associated with completing and disposing of inventory or collecting accounts receivable from the selling price. This calculation gives a more accurate picture of the value of these assets to the company.

net quick assets | net rent

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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