Residual Value Is

question 105

Multiple Choice

Residual value is:

• A) Also called residual value.
• B) Also called scrap value.
• C) An estimate of the asset's value at the end of its benefit period.
• D) A factor relevant to determining depreciation.
• E) All of these.

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Definitions:

Factory Supplies Inventory

Items stored by a manufacturing company that are necessary for the maintenance of machinery and the manufacturing process but are not part of the finished goods.

Work-In-Process

Work-in-process (WIP) refers to partially finished goods that are still in the production process at a manufacturing company's inventory.

Payroll

The total amount of wages, salaries, and other earnings paid to employees by a company.

Finished Goods Inventory

The inventory of finished goods available for sale but which remain unsold.