Question

________ is the amount received from the disposal of the long lived assets at the end of its useful life.

• A. Historical cost
• B. Residual value
• C. Depreciable value
• D. None of the above

Answer 1

The correct option is B Residual value

Salvage value is sometimes referred to as disposal value, residual value, terminal value, or scrap value. The estimated salvage value is deducted from the cost of the assets in order to determine the total amount of depreciation expenses that will be reported during the assets useful life. The price at which a fixed asset is expected to be sold at the end of its useful life is called as disposal value.