The ultimate sales value of a capital asset is referred to as its:
A)residual value.
B)value in use.
C)net book value.
D)historical value.

Question

Quizplus · Accepted Answer

The residual value is the estimated amount that an asset can be sold for at the end of its useful life. It is the ultimate sales value of a capital asset. Option B, value in use, refers to the present value of the future cash flows generated by the asset. Option C, net book value, is the original cost of the asset minus any accumulated depreciation or amortization, and does not reflect the ultimate sales value. Option D, historical value, refers to the original cost of the asset and is not necessarily relevant to its current value.

The Ultimate Sales Value of a Capital Asset Is Referred