Match the LIST-I with LIST-II
LIST-I LIST-II A. Book value of an asset at a given date I. Original value of the asset - scrap value of the asset B. Useful life of an asset II. The value of a depreciable asset at the end of its useful life. C. Total depreciation III. An accounting estimate of the number of years an asset is likely to remain in service for the purpose of cost-effective revenue generation. D. Residual value IV. Original value of the asset - accumulated depreciation at that time
Choose the correct answer from the options given below:
Match the LIST-I with LIST-II
| LIST-I | LIST-II | ||
|---|---|---|---|
| A. | Book value of an asset at a given date | I. | Original value of the asset - scrap value of the asset |
| B. | Useful life of an asset | II. | The value of a depreciable asset at the end of its useful life. |
| C. | Total depreciation | III. | An accounting estimate of the number of years an asset is likely to remain in service for the purpose of cost-effective revenue generation. |
| D. | Residual value | IV. | Original value of the asset - accumulated depreciation at that time |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 4
Book value is cost less accumulated depreciation to date (IV).
Useful life is the estimated number of service years (III).
Total depreciation over the life equals cost minus scrap value (I).
Residual value is the worth of the asset at the end of its useful life (II).
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