The book or carrying value of an asset is:
A)its acquisition cost less the accumulated amortization from the acquisition date to the balance sheet date.
B)its acquisition cost plus accumulated amortization from the acquisition date to the balance sheet date.
C)the amount that could be obtained for the asset on the balance sheet date if it were sold.
D)the annual cost of carrying the asset in inventory.

Question

Quizplus · Accepted Answer

The book value or carrying value of an asset is the acquisition cost less the accumulated amortization from the acquisition date to the balance sheet date. This represents the net value of the asset on the company's books. Option B is incorrect because it adds accumulated amortization to the acquisition cost, which would result in a higher value. Option C is incorrect because this represents the fair market value of the asset, which may not be the same as the book value. Option D is incorrect because it refers to the cost of carrying an asset in inventory, which may not be the same as the book value.

The Book or Carrying Value of an Asset Is