The difference between cost of fixed assets and accumulated depreciation is referred to as:
A) salvage value.
B) carrying amount.
C) fair value.
D) net depreciation.

Question

Quizplus · Accepted Answer

The cost of fixed assets represents the initial cost of acquiring the asset, while accumulated depreciation represents the amount of depreciation charged against the asset over its useful life. The difference between the cost and accumulated depreciation is referred to as the carrying amount, which represents the net value of the asset on the company's balance sheet. Therefore, choice B, carrying amount, is the correct answer.

The Difference Between Cost of Fixed Assets and Accumulated Depreciation