Question 60
MediumOriginal questionMatch each term in List I with its meaning in List II.
| List I | List II |
|---|---|
| A. Cost | I. The years it is expected to be used |
| B. Residual value | II. What the asset was bought and set up for |
| C. Useful life | III. Cost less the depreciation so far |
| D. Book value | IV. What it is expected to fetch at the end |
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Cost and residual value are the start and end values; the useful life is the time between.
Book value is what is left in the accounts at any time: cost minus the depreciation charged so far.
- Concept
- Depreciation terms
- Typical timeTypical
- 120 s
- Your timeYours
- —
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