BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Accumulated depreciation is used to calculate an asset’s net book value, which is the value of an asset carried on the balance sheet. The formula for net book value is cost an asset minus accumulated depreciation.

Detailed explanation-2: -Net book value is the historical cost of an asset, less any amounts recorded for depreciation, amortization, or depletion.

Detailed explanation-3: -To calculate net book value, simply take the original cost of the asset and subtract its accumulated depreciation. To find cumulative depreciation, take the per year depreciation and multiply it by the number of years you have owned the asset.

Detailed explanation-4: -Net book value is calculated as the original cost of an asset, minus any accumulated depreciation, accumulated depletion, accumulated amortization, and accumulated impairment. Given these deductions, net book value represents an accounting methodology for the gradual reduction in the recorded cost of a fixed asset.

Detailed explanation-5: -Net Book Value is calculated by subtracting cumulative depreciation from the original cost of the asset. Cumulative depreciation or amortization refers to the value obtained by multiplying the yearly value by the number of years you have owned the asset.