Net Realizable Value (NRV) is the estimated value of an asset or item after subtracting the costs needed to make it ready for sale. It is commonly used for valuing inventory or accounts...
Category: Intermediate Accounting
What is the Difference Between Common Stock and Preferred Stock?
When it comes to raising capital for a business, companies can issue different types of securities to investors. Two common types of securities are common stock and preferred stock. While both types...
Tangible property refers to physical assets that can be touched and seen, such as land, buildings, machinery, vehicles, and equipment. In business and taxation, tangible property is an essential...
The lower of cost or market (LCM) rule is an accounting principle used to value inventory for financial reporting purposes. Under the LCM rule, a company must value its inventory at either its cost...
Inventory Write-downs: Lower of Cost or Net Realizable Value Rule (LCNRV)
The lower of cost or net realizable value (LCNRV) rule is a common method used to value inventory for financial reporting purposes. It is used to determine the amount of inventory that must be...
When a company decides to discontinue a segment of its business, it must account for the income or loss from that segment as a discontinued operation. Discontinued operations are reported separately...
