Salvage value is sometimes known as ______.
A. Scrap value
B. Going value
C. Junk value
D. Second-hand value
Answer: Option A
Solution (By Examveda Team)
Salvage value is the estimated residual value of an asset at the end of its useful life. It represents the amount that can be recovered by selling the asset after it is no longer usable for its intended purpose. This value is sometimes referred to as scrap value, which indicates the worth of the asset in its dismantled or recycled state. The other terms, such as going value, junk value, and second-hand value, may refer to different aspects of an asset's worth but do not specifically denote the residual value at the end of its useful life as accurately as the term "scrap value."This Question Belongs to Civil Engineering >> Engineering Economics
it should be SCRAP VALUE. because salvage value is the value of the object after it's useful life. that means, it is already a scrap not a second hand value. for reference, https://corporatefinanceinstitute.com/resources/accounting/salvage-value/#:~:text=Salvage%20value%20is%20the%20amount,depreciation%20expense%20of%20an%20asset.