What Is the Meaning of "Residual Value

question 34

Multiple Choice

What is the meaning of "residual value"?

• A)The estimated amount that an entity would currently obtain from disposal of the asset, after deducting disposal costs, for an asset of similar age and condition expected at the end of its useful life.
• B)The total amount to be expensed through depreciation.
• C)The systematic allocation of an asset's depreciable amount over its estimated useful life.
• D)The estimated period of time over which an asset is expected to be available for use by an entity.

---

Definitions:

Test Question

A question used in an examination or a study to assess knowledge, skills, or abilities.

Gestalt Psychology

A theory in psychology that emphasizes the human mind and behavior as a whole rather than separate parts.

Structuralist Approach

An intellectual movement and method of analysis, rooted in linguistics and psychology, that focuses on elements of human culture and the processes of how they relate to each other to form a structure.

Natural Selection

The basis of evolution; the idea that those who inherit characteristics that help them adapt to their particular environments have a selective advantage over those who do not.