Which of the following terms refers to the cost of a fixed asset after accounting for depreciation?

The cost of a fixed asset after accounting for depreciation is referred to as book value. This term specifically represents the value of an asset on the balance sheet, which is calculated by taking the original cost of the asset and subtracting accumulated depreciation. The book value reflects the net value of the asset to the company and is crucial for financial reporting, as it provides insight into the asset’s value as it is used over time.

Understanding book value is significant in accounting and finance as it allows businesses to assess their asset’s worth and performance. It differs from other valuation measures, such as market value, which is determined by the price at which the asset could be sold in the marketplace, and fair value, which considers the estimated price that an asset would fetch in the current market conditions. Replacement cost refers to the cost of replacing an asset with a new one of similar kind, regardless of depreciation. Hence, book value is the most appropriate term for the cost of a fixed asset after accounting for depreciation.