📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      …….. of an asset is the estimated amount that an

      entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
      A Recoverable Amount Correct Answer Incorrect Answer
      B Cost Correct Answer Incorrect Answer
      C Impairment Value Correct Answer Incorrect Answer
      D Residual Value Correct Answer Incorrect Answer
      E Sale Value Correct Answer Incorrect Answer

      Solution

      Residual value is: The estimated amount an entity would currently obtain from disposing of an asset, after deducting estimated disposal costs, assuming the asset has already reached the age and condition expected at the end of its useful life. It is an important concept in depreciation accounting, because: Depreciable amount = Cost of asset − Residual value It represents the expected scrap or salvage value at the end of useful life.

      Practice Next
      More Accounts Questions
      ask-question