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What is the meaning of scrap value? 

  • a)
    The cost of an asset that can be depreciated over time. 

  • b)
    The monetary costs involved in acquiring, installing and commissioning assets.  

  • c)
    The period over which an asset is expected to be available for use by an entity.

  • d)
    The worth of assets to when it is no longer useful.

Correct answer is option 'D'. Can you explain this answer?
Verified Answer
What is the meaning of scrap value?a)The cost of an asset that can be ...
The correct answer is the worth of assets when it is no longer useful.  



  • Scrap value, also known as salvage value or residual value, is the estimated value of an asset at the end of its useful life.

  • In other words, it's the worth of an asset after it has been fully depreciated over the period of its usability.

  • Scrap value is an important concept in finance and accounting as it helps businesses to provide a more accurate estimation of their tangible assets' worth and calculate depreciation more precisely.

  • However, assumptions about scrap value may vary and the real end sale value may be different from the estimated one.

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What is the meaning of scrap value?a)The cost of an asset that can be depreciated over time.b)The monetary costs involved in acquiring, installing and commissioning assets. c)The period over which an asset is expected to be available for use by an entity.d)The worth of assets to when it is no longer useful.Correct answer is option 'D'. Can you explain this answer?
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What is the meaning of scrap value?a)The cost of an asset that can be depreciated over time.b)The monetary costs involved in acquiring, installing and commissioning assets. c)The period over which an asset is expected to be available for use by an entity.d)The worth of assets to when it is no longer useful.Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is the meaning of scrap value?a)The cost of an asset that can be depreciated over time.b)The monetary costs involved in acquiring, installing and commissioning assets. c)The period over which an asset is expected to be available for use by an entity.d)The worth of assets to when it is no longer useful.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the meaning of scrap value?a)The cost of an asset that can be depreciated over time.b)The monetary costs involved in acquiring, installing and commissioning assets. c)The period over which an asset is expected to be available for use by an entity.d)The worth of assets to when it is no longer useful.Correct answer is option 'D'. Can you explain this answer?.
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