alleryStart learning →Net book value of an asset is the historical cost less what?
AIts associated depreciation
BIts current market price
CIts cost of replacement
DIts value for insurance
Answer & Solution
Correct answer: A. Its associated depreciation
Net book value equals cost minus depreciation charged so far.
Keep practising Property, Plant and Equipment
Browse all Property, Plant and Equipment questions for CA Inter, or explore more Accounting topics.
Related questions
Depletion applies to which type of asset?If book and tax depreciation rates differ for a company, what does this create?Depreciation methods that charge more in early years are described as what?Which method is described as the simplest and most often used depreciation method?Yearly depreciation is debited to expense and credited toMachine cost Rs 1,20,000, expected sale Rs 15,000, disposal cost Rs 5,000. Residual value?How is a capital expenditure recorded in the books?Which of these is a capital expenditure?