Accounting for IGCSE & O level - Final Statements (Section 8 - No. 29)
In the context of valuing assets, what is the significance of 'historic cost' less accumulated depreciation?
It is used for all current assets.
It's the net book value of the asset.
It represents the replacement cost of an asset.
It's the amount the asset can be sold for.
Explication
Historic cost less accumulated depreciation represents the asset's book value, which is the asset's value on the balance sheet after considering its depreciation.