The unexpensed portion of an amortizable asset is called:
A)accumulated amortization.
B)net realizable value.
C)net book value.
D)net present value.

Question

Quizplus · Accepted Answer

The unexpensed portion of an amortizable asset is the difference between the cost of the asset and the accumulated amortization. This is called the net book value. Accumulated amortization (A) refers to the total amount of amortization expense that has been recognized to date, while net realizable value (B) refers to the estimated amount the asset could be sold for after deducting any selling expenses. Net present value (D) refers to the current value of future cash flows, which is not directly related to amortization. Therefore, the best choice is C.

The Unexpensed Portion of an Amortizable Asset Is Called