The Difference Between the Balance of a Fixed Asset Account

question 207

True/False

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

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Definitions:

Actual Cash Value

The amount equal to the replacement cost of damaged or stolen property minus depreciation.

Liability

The condition of being legally accountable for certain actions or responsibilities, particularly regarding financial debts or legal duties.

Replacement Value

The cost to replace an asset or property with a new one of similar kind and quality at current market prices.

Stated Value

The value of an asset as declared by its owner, often for insurance purposes, which may or may not reflect its actual market value.