PRC-1 · Chapter 10 · Question 48 of 100
Which of the following is the correct formula to calculate 'Net Book Value' of a non-current asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Original Cost - Accumulated Depreciation
Explanation
The Net Book Value (or Carrying Amount) of a non-current asset is its historical cost minus all the depreciation accumulated on it since its purchase.
More Preparation of Financial Statements MCQs
- Q50If a business fails to record closing inventory entirely, what is the impact on the financial statements?
- Q51After all period-end adjustments are posted, the total debit side of an Adjusted Trial Balance equals Rs. 1,200,000. What must be the…
- Q52A business records a period-end adjusting entry for accrued wages amounting to Rs. 10,000. How is this adjustment reflected in the…
- Q53In the absence of a formal partnership agreement, how are profits and losses shared among partners according to the Partnership Act?
- Q54Partner A and Partner B have an equal profit-sharing agreement. Partner B is entitled to a monthly salary, but Partner A is not. If the…