The Difference Between the Balance of a Fixed Asset Account

question 25

Multiple Choice

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

• A) historical cost
• B) contra asset
• C) book value
• D) market value

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Definitions:

Cash Flows

The collective amount of cash inflow and outflow within a company, significantly determining its liquid resources.

Project Cost

The total expenditure, including all applicable fees and charges, needed to complete a project.

Payback Period

The length of time needed to recoup the initial cost of an investment, measuring the time it takes for an investment to become profitable.

Cash Flows

The aggregate quantity of cash and cash-like assets going in and coming out of a firm.