The Cost of an Asset Less Its Residual Value Is

question 2

Multiple Choice

The cost of an asset less its residual value is referred to as its:

• A) book value.
• B) residual amount.
• C) depreciable amount.
• D) carrying amount.

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Definitions:

Loan Value

The amount that an insured may borrow on a policy from the insurance company.

Life Policy

An insurance contract that pays out a sum of money either on the death of the insured person or after a set period.

Deductible

The amount an insured person must pay out-of-pocket before the insurance company will cover the remaining costs of a claim.

Medical Bills

Charges for medical services rendered, including hospital stays, doctor consultations, and treatments.