What term refers to the amount that will be received for an asset at the time of its disposal?

The term that refers to the amount that will be received for an asset at the time of its disposal is salvage value. Salvage value represents the estimated residual value of an asset after it has been fully depreciated and is intended to indicate how much a business can expect to receive when selling the asset at the end of its useful life.

Understanding salvage value is crucial for accurate asset valuation and effective financial forecasting, as it impacts calculations of depreciation and total asset cost over time. For businesses preparing to dispose of assets, estimating the salvage value can help them make informed decisions about whether to sell, scrap, or maintain an asset. This concept is often used in fields such as accounting, finance, and asset management to ensure proper asset tracking and reporting.

Other terms mentioned, while related, do not precisely capture the same meaning. Liquidation value typically pertains to the net value of assets when a business is being liquidated, recovery value might refer to the expected value of an asset in a broader context, and disposal value can be a more general term without the specific implications of estimation involved in salvage value. Hence, salvage value is the most accurate choice in this context.