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Not necessarily. Book value is the basis of the item less accumulated depreciation. Book value is rarely the actual cash value of an item, any item. Book value has to do with accounting and taxes, not sales price or actual cash value.
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Is The book value of a fixed asset reported on the balance sheet represents its market value on that date?
It is false that the book value of a fixed asset reported on the balance sheet represents its market value on that date. Fixed assets are also known as tangible assets.
What is difference between market value and book value?
Book value is an estimate of what an item could or should sell for, market value is what people will pay.
What is difference between book value and market value?
Book value is an estimate of what an item could or should sell for, market value is what people will pay.
Explain why the book value of an asset is not necessarily the market value of that asset?
It is not same as market value because book value of assets derives from its cost and deduction of depreciation, while market value varies due to market conditions. That's why it may not be same.
What is more important to the decision making process between market value and book value?
market value b/c it is the true value while the book val is the val of assets, liabilities, and OE on the balance sheet
What is difference between market to book value and price to book value?
That is a good question that a lot of people get confused about. In accounting, assets are recorded on your books at cost (what you paid for them). That value (less any accumulated depreciation or impairment expense) is your book value. That is, your book value is based on what you paid for the asset as opposed to it's market value. A market value (fair value) is what that asset would sell for on the open market if you attempted to sell it. This is a very subjective judgment, which is the main reason accountants don't usually report assets at market value in the United States (there are some exceptions in relation to securities). A price is what an asset actually is being sold for. Price and market value are usually the same thing, but sometimes factors make price higher or lower than market value. This is usually as a result of government regulations, or company pricing policies.
Does the book value per share and market value per share are usually the same dollar amount?
No. They are two totally different values. Book Value - This is the intrinsic value of a stock based on the company's books of accounts and assets & liabilities Market Value - This is the value of the stock at which it is currently trading in a stock exchange
What is a company's book value of pledged assets divided by the book value of its secured liabilities called?
Pledged assets to secured liabilities.
What is revaluation of plant assets?
A plant asset is an asset such as land, buildings, and machinery that will be useful for more than one year and is used to help produce revenues for a business. Plant assets are also known as fixed assets. Revaluation of plant/fixed assets is the process of increasing or decreasing their carrying value in the event of major changes in the fair market value of the assets.
How do you find the book value of a company?
Book value of company is the book value of equity of company which can be found from balance sheet of business or book value of business is the book value of assets of business.
How to compute after tax salvage value?
Salvage Value - [Tax * (Market Value - Book Value)
What about formula for market debt ratio and book devt ratio and where is market value and book value?
Market debt ratio= TL / (TL - Equity) Note : equity with market value .
