Note – Please take our quiz ‘Quiz 37 – Scrap Value – (Answers)‘ on this page before going through the below answers. Only the top 3% of our audience scored 10/10 in all of them.
- Name – Quiz 37 – Scrap Value – (Answers)
- Topic – Scrap Value
- Answers with Explanation
Q1. Does an asset have a scrap value if it is not depreciated?
Ans. The correct answer is No. If an asset is not depreciated, it will always be valued at its cost/book value and won’t have any scrap value.
Q2. At the end of an asset’s useful life the _____ cost is its scrap value.
Ans. It is an estimated value of the asset.
Q3. Cost of Asset = 5,000, Total Depreciation = 4,300, Market Price = 6,000, Scrap Value _____?
Ans. Scrap value = Cost of Asset – Total Depreciation. This means 5,000 – 4,300 = 700.
Q4. Scrap value of an asset can never be negative.
Ans. The given statement is False. In some cases, the scrap value of an asset can be negative if the disposal results in a net cash outflow.
Q5. Residual value of an asset is often _____.
Ans. Value of the asset at the end of its life is usually insignificant or zero.
Q6. Scrap Value = _____ – Total Depreciation.
Ans. Scrap value = Cost of Asset – Total Depreciation.
Q7. Scrap value is also known as _____.
Ans. In this context, salvage value is a synonym for scrap value.
Q8. Scrap value is the remaining value of an asset at the end of its _____.
Ans. Scrap value or Salvage value is the worth of an asset at the end of its useful life.
Q9. Scrap value is _____ value of an asset.
Ans. Scrap value means the residual or salvage value of a fixed asset after charging complete depreciation.