What is the term for the cost of fixed assets less its accumulated depreciation?

The term used to describe the cost of fixed assets minus their accumulated depreciation is known as book value. Book value represents the value of an asset recorded on the balance sheet and reflects the original purchase price adjusted for depreciation. As fixed assets are used over time, their value diminishes due to wear and tear, which is accounted for through accumulated depreciation. This makes book value a crucial figure for assessing the asset's worth on the financial statements, providing insight into the remaining value of the asset from an accounting perspective.

Market value, on the other hand, refers to the price that an asset could sell for in the open market and does not necessarily reflect depreciation. Replacement cost is concerned with the amount required to replace an asset with a new one, and depreciated cost is not a standard terminology used in financial accounting. Therefore, book value is the most accurate term in this context.