Answer the following questions using the information below:
Victoria, Inc., is considering replacing a machine. The following data are available:

-The difference between the original cost of an asset and the accumulated depreciation is known as the:
A)historical cost
B)market value
C)book value
D)depreciable cost

Question

Answer the following questions using the information below:
Victoria, Inc., is considering replacing a machine. The following data are available:
 
-The difference between the original cost of an asset and the accumulated depreciation is known as the:
A)historical cost 
B)market value 
C)book value 
D)depreciable cost

Quizplus · Accepted Answer

The difference between the original cost of an asset and the accumulated depreciation is known as book value. Therefore, choice C is the correct option. Historical cost refers to the original cost of the asset. Market value refers to the current value of the asset in the market. Depreciable cost is the original cost of the asset minus its salvage value. None of these options are the correct answer for the given question.

Answer the Following Questions Using the Information Below