The book value of an asset is defined as:
A) cost minus accumulated depreciation.
B) cost minus salvage value.
C) current sales value minus historical cost.
D) cost minus annual maintenance expense.

Question

Quizplus · Accepted Answer

The book value of an asset is calculated by subtracting the accumulated depreciation from the original cost of the asset. This figure represents the net value of the asset as listed on the company's balance sheet.

The Book Value of an Asset Is Defined As