The cost of an asset that is subject to depreciation is called
A) salvage value.
B) depreciable cost.
C) revenue.
D) trade-in value.

Question

Quizplus · Accepted Answer

Depreciable cost is the cost of an asset that is subject to depreciation, which means that it is the cost that is used to calculate depreciation expenses throughout the asset's useful life. Salvage value refers to the estimated value of an asset at the end of its useful life, trade-in value is the amount of money a company receives for trading in an old asset for a new one, and revenue refers to the income earned from the sale of goods or services.

The Cost of an Asset That Is Subject to Depreciation