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PRC-1 · Chapter 6 · Question 49 of 100

At the end of an asset's useful life, assuming the initial estimates were perfectly accurate, its Carrying Amount should logically equal its:

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: C) Residual Value

Explanation

Depreciation allocates the 'depreciable amount' (Cost - Residual Value). Once fully depreciated over its useful life, the remaining carrying amount on the books will exactly equal its estimated residual value.

All 100 questions in Chapter 6Property, Plant and Equipment MCQs with answers

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