A Fully Amortized Asset Is an Asset

question 8

Multiple Choice

A fully amortized asset is an asset:

• A) whose book value has reached zero, and therefore has no market value
• B) whose amortizable cost has reached its salvage value, and therefore is of no further use to the company
• C) that has reached the end of its estimated useful life
• D) that has reached the end of its actual useful life

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Definitions:

Marginal Rates

The additional cost or benefit gained from a small or marginal change in production, consumption, or investment.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Distribution

The process of making a product or service available to consumers through a supply chain and marketing channels.

Marginal Rate

Often linked to taxation or utility, it is the rate applied to the next dollar of income or the next unit of consumption.