The net book value of a fixed asset is determined by
A) original cost less accumulated depreciation
B) original cost less depreciation expense
C) original cost less accumulated depreciation plus depreciation expense
D) original cost plus accumulated depreciation

Question

Quizplus · Accepted Answer

The net book value of a fixed asset is the original cost of the asset less any accumulated depreciation, which represents the total amount of depreciation expense recorded for the asset since it was acquired. Therefore, the correct formula for calculating net book value is original cost less accumulated depreciation. Option A is the only choice that reflects this calculation.

The Net Book Value of a Fixed Asset Is Determined