When the accumulated depreciation is deducted from the long-term asset account, the figure is known as the:
A) market value.
B) net realisable value.
C) net book value.
D) None of the above.

Question

Quizplus · Accepted Answer

The figure obtained after deducting the accumulated depreciation from the long-term asset account is known as the net book value. This represents the value of the asset that is recognized on the balance sheet after accounting for its depreciation over time. The market value may differ from this value and the net realisable value is a term used in inventory accounting.

When the Accumulated Depreciation Is Deducted from the Long-Term Asset