A vida do ativo e o valor residual
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A vida do ativo e o valor residual

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  • Nota de Estudos
  • Rever Tópicos
    Tashika B.
    US
    Tashika B.

    What is the life of the asset and the residual value?

    BabaJide Martins F.
    TR
    BabaJide Martins F.

    The residual value is what the business expects to get from the asset when it is disposed of, for example, traded in.

    Alice B.
    GQ
    Alice B.

    In the business world, economic life of an asset refers to the revenue the asset generates, whereas residual value refers what the asset is expected to generate when traded in the business.

    Agbor  Judy E.
    NG
    Agbor Judy E.

    I should say some topics should have been treated earlier in this course for clearer and easy understanding especially for those of us that are not accounting students

    Morne V.
    ZA
    Morne V.

    Residual value is the net price after sale or net profit.

    Sunday O.
    NG
    Sunday O.

    Life of the asset and the residual value

    Odongo M.
    UG
    Odongo M.

    Accounting -> Life of the asset and the residual value Life of the asset and the residual value The life of an asset is usually an estimate. This is to be remembered when discussing questions relating to asset valuation. Firstly, we are using the historical cost of the asset; secondly, the life is only an estimate, thirdly, estimates are made as to the residual, disposal or s value of the asset; and, finally, assets differ in the nature of their use. At no time during the life of the business is the balance sheet a valuation statement. When discussing the 'life' of an asset it is important that the life be regarded as the 'economic life'. That is to say that the asset is only of value to the business whilst generating revenue. The residual value is what the business expects to get from the asset when it is disposed of, for example, traded in.

    Davidson Ade O.
    NG
    Davidson Ade O.

    life of an assets is treated as economic life

    Penelope M.
    US
    Penelope M.

    agreed!

    Adil N.
    MA
    Adil N.

    What is the life of the asset and residual value?

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