What is the term for the worth of property equal to the original cost less depreciation?

The term that describes the worth of property equivalent to its original cost minus depreciation is referred to as Book Value. This financial metric represents the value of an asset as recorded on the balance sheet of a company, showing how much of the asset’s value has been consumed over time due to factors such as wear and tear, obsolescence, or use in operations.

Book Value serves as a critical measurement for both valuing an asset on financial statements and assessing overall company value. It reflects the historical cost of acquiring the asset while making adjustments for accumulated depreciation, which is a systematic allocation of the asset’s cost over its useful life. This measurement can indicate how much value an organization can expect to recover should it choose to sell the asset.

Other terms presented in the choices relate to different concepts. Face Value often pertains to the nominal value of a bond or other financial instrument, while Market Value represents the current price at which an asset can be bought or sold in the open market, which can fluctuate based on supply and demand. Scrap Value, on the other hand, pertains to the estimated residual value of an asset at the end of its useful life, often much lower than the Book Value at that point. Each term serves its purpose in financial discussions but points to