The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed
A) historical cost
B) contra asset
C) book value
D) market value

Question

Quizplus · Accepted Answer

The balance of a fixed asset account represents the original cost of the asset, while the accumulated depreciation account represents the total amount of depreciation charged against the asset since its acquisition. The difference between these two amounts is the book value of the asset, which represents the net amount that the asset is worth on the company's books. Therefore, the correct answer is C, book value.

The Difference Between the Balance of a Fixed Asset Account