Which of the Following Is the Expected Cash Value of an Asset

question 36

Multiple Choice

Which of the following is the expected cash value of an asset at the end of its useful life?

• A) Book value
• B) Residual value
• C) Carrying value
• D) Market value

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Short-Term Investments

Assets that are expected to be converted into cash or sold within one year or the operating cycle, whichever is longer.

Internal Auditors

Professional auditors who are employed by an organization to perform auditing and analysis of its operations, systems, and financial activities, ensuring compliance and identifying improvements.

Internal Control Elements

Components of a framework designed to safeguard assets, ensure financial reporting accuracy, promote operational efficiency, and encourage adherence to policies.