Question

The difference between an asset's cost and its accumulated depreciation is called

A. real value.
B. book value.
C. nominal value.
D. fair value.
E. market value.

Answer 1

The difference between an asset's cost and its accumulated depreciation is called book value. It is an important measure used in accounting to assess the value of an asset on a company's balance sheet.

Step-by-step explanation:

The difference between an asset's cost and its accumulated depreciation is called book value. The book value of an asset represents its net worth and is calculated by subtracting the accumulated depreciation from the original cost of the asset. It is an important measure used in accounting to assess the value of an asset on a company's balance sheet.