The Difference Between the Cost of a Depreciable Asset and Its

question 189

Multiple Choice

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

• A) market value of the asset.
• B) blue book value of the asset.
• C) book value of the asset.
• D) depreciated difference of the asset.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Acid-Test Ratio

A stringent indicator of whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts using its existing assets.