Final answer:
The book value of an asset does not necessarily equal its residual value at the end of its useful life, regardless of the depreciation method used.
Step-by-step explanation:
The statement is false. Despite the depreciation method used, the asset's book value does not necessarily equal its residual value at the end of its useful life.The book value of an asset is the cost of the asset minus its accumulated depreciation. The residual value, also known as salvage value, is the estimated value of an asset at the end of its useful life. While the residual value may serve as an estimate for the asset's future value, it does not determine the actual book value of the asset.For example, if an asset has a book value of $10,000 and a residual value of $1,000 at the beginning of its useful life, the accumulated depreciation over time will reduce the book value. However, at the end of the asset's useful life, the book value may be lower or higher than the residual value, depending on the depreciation method used and the actual condition, market value, or sale value of the asset.