The total cost of an asset less its accumulated depreciation is called:

Question

Quizplus · Accepted Answer

The book value of an asset is the total cost less its accumulated depreciation. Therefore, option C is the correct answer. Option A (current/market value) refers to the value of the asset in the current market, which may or may not be related to the asset's cost or accumulated depreciation. Option B (present value) refers to the current value of future cash flows discounted at a certain rate, and is not related to the asset's cost or accumulated depreciation. Option D (replacement cost) refers to the cost of replacing or reproducing the asset, which may or may not be related to the asset's current or book value. Option E (historical cost) refers to the original cost incurred to acquire the asset, and does not take into account any subsequent depreciation or changes in market value.

The Total Cost of an Asset Less Its Accumulated Depreciation