Cash Flow from Operating Activities-Indirect Method
The books val...
Question
The books value of an asset is obtained by deducting depreciation from its __________.
A
Market value
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B
Market + Cost price
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C
Cost
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D
Scrap value
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Solution
The correct option is B Cost Book value is the value of a security or asset as entered in the firm's books. Book value is the value of an asset according to its balance sheet balances. An asset's initial book value is its acquisition cost. Every year depreciation is deducted from that value.
So the book value of an asset is obtained by deducting depreciation from its cost price.