Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 14)
Which of the following describes the 'carrying amount' of a non-current asset?
The original cost of the asset.
The current market value of the asset.
The cost of the asset less accumulated depreciation and impairment losses.
The amount of cash received when the asset was initially purchased.
Explanation
Carrying amount is also known as the book value. It is the cost of the asset, adjusted for accumulated depreciation and any recognized impairment losses.
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