Net Realizable Value
NRV is the estimated selling price of an asset, less any costs required to complete or sell it. It’s commonly used for valuing inventory and accounts receivable under the conservatism principle, ensuring assets are not overstated on the balance sheet and reflect potential losses or adjustments.
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Net Present Value (NPV)
NPV is a financial metric that calculates the present value of future cash flows, discounted at a specific rate, minus…
Non-monetary Asset
A non-monetary asset is an item that cannot be readily converted to a fixed amount of cash, such as inventory,…
Normal Balance
A normal balance is the expected debit or credit side where increases in an account are recorded. For example, assets…
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