The term 'Net Realizable Value' means: MCQ with Answer and Explanation

Question

Share Report Error

The term 'Net Realizable Value' means:

A. Market price

B. Estimated selling price less costs to complete and sell

C. Original cost

D. Replacement cost

Answer: Option B

Solution (By JKSSB Mock Tests)

NRV = estimated selling price in ordinary course less estimated costs of completion and estimated costs to make the sale.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

A 'Clean Report' issued by an auditor is also known as an:

A. Disclaimer of Opinion

B. Unqualified Opinion

C. Adverse Opinion

D. Qualified Opinion

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
An unqualified opinion indicates the auditor found the financial statements to be free from material misstatements and in accordance with GAAP.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'GST Council' is a constitutional body under:

A. Article 370

B. Article 324

C. Article 280

D. Article 279A

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
GST Council was created by Constitution (101st Amendment) Act, 2016, under Article 279A.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Abnormal loss of stock by fire (fully uninsured) is treated by:

A. Crediting Trading A/c and Debiting P&L A/c

B. Crediting P&L A/c and Debiting Trading A/c

C. Only crediting Trading A/c

D. Only debiting P&L A/c

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
The loss reduces the stock (Credit Trading A/c). Being an uninsured abnormal loss, it is transferred entirely to the debit side of P&L A/c.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs