The carrying amount of an asset is equal to the
A)asset's fair value less its original cost.
B)"blue-book" amount relied on by secondary markets.
C)replacement cost of the asset.
D)asset's cost less accumulated depreciation.

Question

Quizplus · Accepted Answer

The carrying amount of an asset is defined as its cost less accumulated depreciation, which reflects the portion of the asset's cost that has been expensed over its useful life. Therefore, choice D is the correct answer. Choice A is the definition of fair value, not carrying amount. Choice B is not a valid accounting term. Choice C refers to the cost of replacing an asset, which is not necessarily the same as its carrying amount.

The Carrying Amount of an Asset Is Equal to the