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:

Identify

To recognize or establish as being a particular person or thing; to determine the identity of.

Ends

The term may refer to goals, objectives, or outcomes that an individual, group, or society seeks to achieve.

Outcome

The result or consequence of an action, process, or event, often measured to determine its success or failure.

High Rank Positions

Roles or titles within an organization or society that carry significant authority, responsibility, and status.