Question

Select the most appropriate answers from the alternatives given below and rewrite the sentence.

The amount realized at the end of working life of an asset __________.
a) residual value
b) market price
c) original cost
d) written down value

Answer 1

The amount realized at the end of the working life of an asset is residual value.

Explanation:
At the end of useful life of an asset, it is sold or scrapped and the value that is realised is known as the residual value or the scrap value of the asset.