Match these terms with their correct definition.
-The amount of cash or trade-in consideration that is expected when an asset is retired from service
A)Book value
B)Cost
C)Depletion
D)Depreciable cost
E)Depreciation
F)Impairment
G)Involuntary disposal
H)Residual value

Question

Quizplus · Accepted Answer

Residual value is the amount of cash or trade-in consideration that is expected when an asset is retired from service.

Answer: A 
 Book value is the value of an asset as it appears on a balance sheet, calculated by subtracting accumulated depreciation from the original cost of the asset.

Answer: B 
 Cost is the original price paid for an asset.

Answer: D 
 Depreciable cost is the cost of an asset that can be depreciated over its useful life.

Answer: E 
 Depreciation is the systematic reduction in the value of an asset over its useful life.

Answer: F 
 Impairment is the decrease in the value of an asset due to unexpected events such as damage or changes in market conditions.

Answer: G 
 Involuntary disposal is the unplanned, forced sale or retirement of an asset due to events such as theft or natural disaster.

Answer: C 
 Depletion is the decrease in the value of a natural resource through use or extraction.

Match These Terms with Their Correct Definition