Which one of the following regarding the book value of an asset is correct?

Question

Quizplus · Accepted Answer

The book value of an asset is the difference between the original cost of the asset and the accumulated depreciation to date. It reflects the value of the asset on the company's balance sheet. Option A is incorrect as fair value refers to the current market value instead of the original cost. Option C is incorrect as it only reflects the book value for one specific year instead of accumulated depreciation. Option D is incorrect as it is only the original cost of the asset when it was purchased and does not reflect any depreciation incurred.

Which One of the Following Regarding the Book Value of an Asset