Residual value of the asset is realized at the _______.

Middle of the year

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End of the year

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End of effective life of asset

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Purchase of asset

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Solution

The correct option is D End of effective life of asset
Residual value is the amount of asset that company expects to receive at the end of effective life of an asset. It is the estimated amount that company can acquire when they dispose off an asset at the end of its useful life.

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Residual value of the asset is realized at the _______.

The correct option is D End of effective life of assetResidual value is the amount of asset that company expects to receive at the end of effective life of an asset. It is the estimated amount that company can acquire when they dispose off an asset at the end of its useful life.

The correct option is D End of effective life of asset
Residual value is the amount of asset that company expects to receive at the end of effective life of an asset. It is the estimated amount that company can acquire when they dispose off an asset at the end of its useful life.