When the accumulated depreciation is deducted from the long-term asset account,the figure is known as the:
A) market value.
B) replacement value.
C) net book value.
D) realisable value.

Question

Quizplus · Accepted Answer

Deducting the accumulated depreciation from the long-term asset account gives us the net book value of the asset. This represents the cost of the asset minus the total depreciation applied to it over its useful life. It is an important metric used in financial statements to assess the current value of a company's long-term assets. Therefore, the correct answer is C, net book value. The other options, market value, replacement value, and realisable value, are not directly related to the calculation of net book value.

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