Asked by Tyrik Lawson on May 28, 2024
Verified
The cost of an asset less the depreciation to date is referred to as the net _____ value.
A) Liquid
B) Book
C) Market
D) Cash
E) Financial
Book Value
The value of an asset according to its balance sheet account balance, subtracting any liabilities or depreciation.
Depreciation
In accounting, a process for allocating a physical asset's cost over the duration of its effective life.
Net Liquid
Refers to the amount of cash or cash-equivalents a company or individual has after accounting for all liabilities.
- Identify the distinction between the book value and market value of assets.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
B
Explanation :
The cost of an asset less the depreciation to date is referred to as the net book value. This value represents the asset's carrying value on the balance sheet and is calculated by subtracting the accumulated depreciation from the asset's original purchase cost.
Learning Objectives
- Identify the distinction between the book value and market value of assets.