The Total Cost of an Asset Less Its Accumulated Depreciation

question 114

Multiple Choice

The total cost of an asset less its accumulated depreciation is called:

• A) Historical cost.
• B) Carrying amount.
• C) Present value.
• D) Current (market) value.
• E) Replacement cost.

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Definitions:

Risk Premiums

The additional return expected from an investment when compared to a risk-free asset, compensating investors for bearing higher risk.

Multifactor APT

Multifactor APT (Arbitrage Pricing Theory) is a theoretical framework that estimates the expected return on a financial asset, considering multiple risk factors and arbitrage opportunities in the market.

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, typically represented by government bonds.

expected Returns

The anticipated return on an investment or portfolio based on historical data or probabilistic models, accounting for known or foreseeable risks and returns.