Question

The amount realised 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 correct option is A Residual value

Every assets has its estimated life of working. After the life, the asset must be disposed off. On disposal, organization may receive some amount on sale of such asset.

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