What is the term used for the difference between the Equipment account balance and the Accumulated Depreciation-Equipment account balance?
A) contra asset
B) market value
C) historical cost
D) book value

Question

Quizplus · Accepted Answer

The term used for the difference between the Equipment account balance and the Accumulated Depreciation-Equipment account balance is book value. This represents the net value of the asset on the company's balance sheet after accounting for accumulated depreciation. Contra asset (A) refers to an account that has a credit balance and reduces the value of the associated asset account. Market value (B) refers to the current price at which an asset can be sold in the market. Historical cost (C) refers to the original cost of acquisition of the asset.

What Is the Term Used for the Difference Between the Equipment