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# The price of a fixed asset at the end of its useful life is called

### Question

The price of a fixed asset at the end of its useful life is called

### Options

A)
salvage value B)
depriciation value
C)
annual depreciation
D)
appreciation value

### Explanation:

The question is asking about the price of a fixed asset at the end of its useful life.

The options given are:

Option A: salvage value (Correct)

Option B: depreciation value

Option C: annual depreciation

Option D: appreciation value

The price of a fixed asset at the end of its useful life is called the salvage value. This refers to the amount of money that can be obtained by selling or disposing of the asset after it has fulfilled its purpose and is no longer needed. The salvage value is often used in calculations to determine the depreciation of the asset over its useful life.

Depreciation, on the other hand, refers to the decrease in value of an asset over time due to factors such as wear and tear, obsolescence, or age. It is the amount by which the asset's value decreases each year.

Annual depreciation is the portion of the asset's value that is deducted each year to account for its decrease in value. It is calculated by dividing the total depreciation over the useful life of the asset by the number of years it will be used.

Appreciation value, on the other hand, refers to an increase in the value of an asset over time. This is the opposite of depreciation and is not relevant to the price of a fixed asset at the end of its useful life.

Therefore, the correct option is A: salvage value. This represents the price of the fixed asset at the end of its useful life.