Accounting Glossary

Book Value

Definition

The net value of an asset as recorded on the balance sheet, equal to its original cost minus accumulated depreciation. Also refers to total shareholders' equity (assets minus liabilities) for a whole company.

Formula

Book Value of Asset = Cost − Accumulated Depreciation

Example

A truck purchased for $80,000 with $30,000 accumulated depreciation has a book value of $50,000.

Practice this on iLove-Accounting

Put book value to work

Practice it in Depreciation Course, with fresh AI-graded exercises and specific feedback.

Practice this on iLove-Accounting →

← Browse all 116 accounting terms