Asked by Joselyne Saldaña Gonzalez on Jul 06, 2024
Verified
The difference between the balance in a fixed asset account and its related accumulated depreciation account is the asset's book value.
Accumulated Depreciation
The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and put into use.
Fixed Asset
Long-term tangible assets used in the operations of a business that are not expected to be converted to cash in the short term.
Book Value
The net value of an asset or company, calculated by subtracting liabilities from assets and often used to assess the worth of tangible assets on balance sheets.
- Understand the concept of book value and how it is calculated for a fixed asset.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
True
Explanation :
This statement is true. The book value of a fixed asset is calculated by subtracting the accumulated depreciation from the original cost, and this difference can be seen by comparing the balance in the fixed asset account and the related accumulated depreciation account.
Learning Objectives
- Understand the concept of book value and how it is calculated for a fixed asset.