Accounting for IGCSE & O level - Final Statements (Section 14 - No. 16)
What is the difference between 'historic cost' and 'net book value' of an asset?
There is no difference; they are the same.
Historic cost is the original cost, and net book value is the cost less accumulated depreciation.
Historic cost is the market value, and net book value is the original cost.
Historic cost includes depreciation, and net book value does not.
Explanation
Historic cost is the original purchase price, and net book value is the historic cost less any accumulated depreciation.
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