At the End of an Asset's Useful Life, the Balance

question 135

Multiple Choice

At the end of an asset's useful life, the balance in Accumulated Depreciation will be the same as the:

• A)tax liability.
• B)book value.
• C)salvage value.
• D)total depreciation expense over its useful life.

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Definitions:

Net Income

The amount of profit left after deducting all costs, taxes, and expenses from total revenue.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life.

Cash Dividends

Payments made by a corporation to its shareholder members, typically in the form of cash, as a distribution of profits.

Accounts Receivable

Money owed to a company by its customers from sales or services rendered on credit.