Which one of the following would correctly describe the net realisable value of a two year old asset? Select one alternativeThe original cost of the asset less two years' depreciationThe cost of an equivalent new asset less two years' depreciationThe amount that could be obtained from selling the asset, less any costs of disposalThe present value of the future cash flows obtainable from continuing to use the asset

Net realizable value is the amount that can be recovered on selling an asset, after deducting the…

Answered: Which one of the following would…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which one of the following would correctly describe the net realisable value of a two year old asset?

Select one alternative

The original cost of the asset less two years' depreciation
The cost of an equivalent new asset less two years' depreciation
The amount that could be obtained from selling the asset, less any costs of disposal
The present value of the future cash flows obtainable from continuing to use the asset

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