The portion of the acquisition cost of the asset yet to be allocated is known as___________?
Correct answer: A. Written down value
- A. Written down value
- B. Accumulated value
- C. Salvage value
- D. Residual Value
Explanation
The acquisition cost remaining after accumulated depreciation is deducted is the written-down value, also called the book value or carrying amount. Salvage or residual value is only the estimated amount recoverable at the end of useful life.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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More Accounting Principles questions
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