Match the descriptions with their terms:
-Expected cash value of the asset at the end of its useful life.
A) Plant assets
B) Depreciation
C) Carrying amount
D) Residual value
E) Straight-line method
F) Units-of-production method
G) Diminishing balance method
H) Amortisation
I) Revenue expenditures
J) Capital expenditures

Question

Quizplus · Accepted Answer

Residual value refers to the estimated amount that an asset is expected to realize at the end of its useful life after it has been fully depreciated. This value is important in calculating depreciation expenses, especially for methods that subtract the residual value from the cost of the asset to determine the total amount to be depreciated.

Match the Descriptions with Their Terms