Assuming no additions,replacements,or extraordinary repairs,the book value of any long-lived asset with a limited life is always less than or equal to its acquisition cost.
BT: Knowledge

Question

Quizplus · Accepted Answer

This statement is true based on the principle of depreciation, which recognizes that long-lived assets lose value over time due to wear and tear and obsolescence. The book value of such an asset is the difference between its acquisition cost and accumulated depreciation, which reduces its value to reflect its decreasing usefulness and resale potential. Therefore, the longer the asset has been in use, the lower its book value will be compared to its original cost. However, if there are additions, replacements, or extraordinary repairs that increase the asset's useful life or productive capacity, the book value may exceed the acquisition cost, since depreciation may be reset or reduced accordingly.

Assuming No Additions,replacements,or Extraordinary Repairs,the Book Value of Any Long-Lived