The total cost of an asset less its accumulated depreciation is called:
A) Historical cost.
B) Carrying amount.
C) Present value.
D) Current (market) value.
E) Replacement cost.

Question

Quizplus · Accepted Answer

The carrying amount of an asset is its total cost less its accumulated depreciation. Historical cost refers to the original cost of acquiring the asset, present value refers to the current value of future cash flows, current (market) value refers to the market price of the asset and replacement cost refers to the cost of replacing the asset with a similar one.

The Total Cost of an Asset Less Its Accumulated Depreciation