1. The problem asks for the meaning of "net book value" of a fixed asset. 2. Net book value is an accounting term used to represent the value of a fixed asset after accounting for depreciation. 3. The formula for net book value is: $$\text{Net Book Value} = \text{Cost of Asset} - \text{Accumulated Depreciation}$$ 4. Important points: - Cost of Asset is the original purchase price. - Accumulated Depreciation is the total depreciation charged on the asset up to the reporting date. 5. Explanation: Net book value reflects the asset's value on the books after reducing the cost by all depreciation expenses recorded so far. It is not the current market value but the accounting value. 6. Among the options given: - Option 1: "The Cost less accumulated depreciation up to the date of reporting" matches the definition. - Option 2: "The current worth of the asset" refers to market value, not net book value. - Option 3: "The Cost of the asset less amount expensed as depreciation in the current period" only subtracts current period depreciation, not accumulated. - Option 4: "The cost of the asset" ignores depreciation. 7. Therefore, the correct answer is option 1.