Dictionary of Accounting Terms: residual value
residual value
- value of leased property at the end of the lease term.
- at any time, the actual or estimated value (that is, proceeds minus disposal costs) of an asset, also called salvage value.
- value of a depreciable asset after all allowable depreciation has been taken.
Dictionary of Business Terms: residual value
residual value
- realizable value of a fixed asset after costs associated with the sale.
- amount remaining after all allowable depreciation charges have been subtracted from the original cost of a depreciable asset.
- scrap value, which is the value to a junk dealer.
- in automobile leasing, an estimate of what the car's value will be when the lease expires. This estimate is used to help calculate the approximate monthly lease payment.
Dictionary of Finance and Investment Terms: residual value
residual value
- realizable value of a fixed asset after costs associated with the sale.
- amount remaining after all allowable depreciation charges have been subtracted from the original cost of a depreciable asset.
- scrap value, which is the value to a junk dealer. Also called salvage value.
- in automotive leasing, the contractual purchase price and the termination of the lease.
