Can you answer this FAR question? If not, sit for FAR now!



Net Realizable Value

This is the amount of money the company can actually expect to receive. If my accounts receivable is $40,000 and my allowance for doubtful accounts is $1,000 then realistically I can expect to receive $40,000 -$1,000 or $39,000. $39,000 is my net realizable value.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.