- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 7. Analysis of Long-Term Assets
- Subject 6. Depreciation Methods
CFA Practice Question
What is the cost of a fixed asset less its accumulated depreciation?
B. Net book value
C. Salvage value
A. Net realizable value
B. Net book value
C. Salvage value
Correct Answer: B
The difference between the cost of a fixed asset and its accumulated depreciation is called its net book value or simply its book value.
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