The expected value of a depreciable asset at the end of its useful life is called ________.
A) book value
B) residual value
C) depreciation expense
D) accrued expense

Question

Quizplus · Accepted Answer

The residual value is the value of an asset at the end of its useful life or disposal. It is also referred to as salvage value or scrap value. It is used in calculating the depreciation expense of an asset. Options A, C, and D are not correct; the book value is the value of an asset as recorded in the balance sheet after depreciation, and depreciation expense is the allocation of the cost of the asset over its useful life, while accrued expense is an expense that has been incurred but not yet paid or recorded.

The Expected Value of a Depreciable Asset at the End