The depreciable cost of an asset is
A)the unexpired cost of the asset.
B)original cost minus residual value.
C)the expired cost of the asset.
D)original cost minus accumulated depreciation.

Question

Quizplus · Accepted Answer

Depreciable cost of an asset is calculated as the original cost of the asset minus its residual value (if any). It represents the portion of the asset's cost that is depreciated over its useful life. Option A is incorrect as unexpired cost is not a commonly used accounting term. Option C is incorrect as expired cost does not represent the cost that is yet to be depreciated. Option D is incorrect as accumulated depreciation is a contra account that reduces the original cost of the asset, it does not represent the depreciable cost.

The Depreciable Cost of an Asset Is