The Book Value of an Asset Is Equal to the ________

question 48

Multiple Choice

The book value of an asset is equal to the ________.

• A) fair market value minus the accounting value
• B) original purchase price plus annual depreciation expense
• C) original purchase price minus accumulated depreciation
• D) depreciated value plus recaptured depreciation

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Definitions:

Proportional

Being proportional means two quantities maintain a constant ratio or relationship relative to one another, exemplified by the equation \(y = kx\), where \(k\) is the constant of proportionality.

Length

The measurement of something from end to end or the extent of something along its greatest dimension.

X

Often used to represent an unknown quantity or variable in mathematical equations and expressions.

Markup Rate

The percentage increase on the cost price of goods to achieve the selling price.