Residual Value Is Also Known as All of the Following

question 69

Multiple Choice

Residual value is also known as all of the following except

• A)net book value
• B)salvage value
• C)scrap value
• D)trade-in value

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Definitions:

Stated Value

The value assigned to no-par-value stock by the board of directors of a company, which can then be used as the basis for accounting and legal purposes.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued on common shares.

Cumulative Preferred Stockholders

Investors holding a type of preferred stock that accumulates dividends in arrears should the dividends not be declared in any given period.

Non-Participating

Refers to insurance policies or investment products that do not provide dividends or bonuses to policyholders or investors.