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Match the LIST-I with LIST-II

LIST-ILIST-II
A.Book value of an asset at a given dateI.Original value of the asset - scrap value of the asset
B.Useful life of an assetII.The value of a depreciable asset at the end of its useful life.
C.Total depreciationIII.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 valueIV.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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