The Difference Between the Cost of an Asset and the Accumulated

question 20

Multiple Choice

The difference between the cost of an asset and the accumulated depreciation for that asset is called

• A) Prepaid Depreciation.
• B) Unearned Depreciation.
• C) Book Value.
• D) Depreciation Expense.
• E) Depreciation Value.

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Definitions:

Fixed-Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales, indicating how well assets are being managed.

EVA

Economic Value Added is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and taxes.