The difference between the cost of an asset and the accumulated depreciation for that asset is called
A) Depreciation Expense.
B) Unearned Depreciation.
C) Prepaid Depreciation.
D) Depreciation Value.
E) Carrying Amount.

Question

Quizplus · Accepted Answer

The difference between the cost of an asset and the accumulated depreciation for that asset is the carrying amount. This represents the current value of the asset on the balance sheet. Option A (Depreciation Expense) is the amount of depreciation that has been recorded during the current period, while options B (Unearned Depreciation) and C (Prepaid Depreciation) are not accounting terms commonly used in relation to depreciation. Option D (Depreciation Value) is not a commonly accepted accounting term.

The Difference Between the Cost of an Asset and the Accumulated