The difference between cost and accumulated depreciation is referred to as

Question

Quizplus · Accepted Answer

The carrying amount (also known as carrying value or net book value) is the difference between the cost of an asset (i.e. what was paid for it) and its accumulated depreciation (i.e. how much it has been depreciated since it was acquired). Therefore, the correct answer is B. 
A is incorrect because "net depreciation" is not a commonly-used accounting term. 
C is incorrect because fair value is not necessarily related to the cost or accumulated depreciation of an asset. 
D is incorrect because accumulated depreciation refers specifically to the total amount of depreciation that has been recorded for an asset, and is not the difference between cost and accumulated depreciation.

The Difference Between Cost and Accumulated Depreciation Is Referred to as