The Book Value of an Asset Is Equal to Its

question 86

True/False

The book value of an asset is equal to its installed cost of asset minus the accumulated depreciation.

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Definitions:

Contra-Asset

An account that offsets an associated asset account on a company's balance sheet, like an allowance for doubtful accounts reducing accounts receivable.

Original Cost

The initial price paid to acquire an asset or service, not accounting for depreciation or adjustments.

Book Value

The residual amount that represents a company's assets minus its liabilities.

Accumulated Depreciation

The aggregate depreciation recorded on a fixed asset since its commencement of use.