The original value of an asset minus the accumulated depreciation at a given date is known as
The original value of an asset minus the accumulated depreciation at a given date is known as
Solution
The question asks for the term that represents the original value of an asset minus the accumulated depreciation at a given date.
Formula: Original Value - Accumulated Depreciation = ?
Original Value is the initial purchase price of an asset when new.
Accumulated Depreciation is the total loss in value over time due to wear and tear.
The result is the current worth of the asset.
Salvage Value is the estimated value at the end of the asset's useful life.
Scrap Value is synonymous with salvage value - the amount received when disposing of the asset.
Lost Value is not a standard accounting term.
Book Value is calculated as Original Cost - Accumulated Depreciation, which matches the given formula.
Example:
A car purchased for ₹10,00,000 (Original Value)
After 3 years, accumulated depreciation = ₹3,00,000
Book Value = ₹10,00,000 - ₹3,00,000
Book Value = ₹7,00,000
This represents the current value of the car in the accounting records.
The answer is Book Value.
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