The difference between the cost of an asset and the accumulated depreciation for that asset is called
A) Prepaid Depreciation.
B) Unearned Depreciation.
C) Book Value.
D) Depreciation Expense.
E) Depreciation Value.

Question

Quizplus · Accepted Answer

The difference between the cost of an asset and the accumulated depreciation for that asset is the book value. This represents the current value of the asset on the company's balance sheet, taking into account the depreciation that has been recorded since the initial purchase or acquisition. A is incorrect as there is no such term as prepaid depreciation, and B is incorrect as unearned depreciation is not a recognized accounting concept. D and E are also incorrect as these terms refer to the expense or value of depreciation, rather than the difference between cost and accumulated depreciation.

The Difference Between the Cost of an Asset and the Accumulated