The Term "Net Book Value" in the Fixed Asset Ledger

question 38

Multiple Choice

The term "net book value" in the fixed asset ledger is considered to be useful to the preparer and the user because it __________.

• A) tells the accountant the amount the asset could be sold at today
• B) tells the accountant how much was originally paid for the fixed asset
• C) tells the accountant the depreciation period the assets will be depreciated over
• D) tells the accountant the remaining value of the fixed asset less total depreciation to date

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Definitions:

Perception

The process by which sensory information is organized, interpreted, and consciously experienced.

Shape Constancy

The perceptual phenomenon whereby the perceived shape of an object remains constant despite changes in the angle of view, distance, or lighting.

Trapezoidal Image

A digital or optical image characterized by a trapezoid shape, often as a result of perspective distortion in photography.

Retinal

Pertaining to the retina, the light-sensitive layer of tissue at the back of the inner eye.