Forensic Accounting

Category - Specialized Forensic Knowledge

What is net realizable value?
  1. Gross value plus allowance for bad debt
  2. Total value of receivables
  3. Total receivables from the past five years
  4. Total receivables less allowance for doubtful accounts
Explanation
Answer: D - Net realizable value is total receivables less allowance for doubtful accounts, or what the company deems as bad debt.
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