- CFA Exams
- 2021 CFA Level I Exam
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 26. Long-lived Assets
- Subject 3. 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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