The Book Value of an Asset Is the

question 72

Multiple Choice

The book value of an asset is the

• A) Original cost of the asset
• B) Market value of the asset
• C) Total of all expenses associated with the asset
• D) Acquisition cost of the asset less any accumulated depreciation on the asset

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Definitions:

Correcting Entries

Journal entries made to amend previously recorded transactions or entries that were made incorrectly.

Balance Sheet Account

A financial statement line item that represents the assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement Account

An account found on the income statement that records business transactions affecting the company's revenue, expenses, gains, and losses.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.