The difference between the original cost of an asset and the accumulated depreciation is known as the:
A)historical cost.
B)depreciable cost.
C)market value.
D)book value.

Question

Quizplus · Accepted Answer

The book value of an asset is the difference between its original cost and the accumulated depreciation over time. Option A, historical cost, refers to the original cost of an asset. Option B, depreciable cost, refers to the portion of the original cost of an asset that can be depreciated over its useful life. Option C, market value, refers to the current value of an asset in the market.

The Difference Between the Original Cost of an Asset and the Accumulated