5 Questions
Book value is the amount in which an item can be sold at the present time.
False
Book value refers to the value of an asset as reported on the company's income statement.
False
Market value is based on the asset's actual purchase price.
False
Book value of stocks is the amount of money shareholders would receive if assets were liquidated and liabilities are paid off.
True
Generally Accepted Accounting Principles (GAAP) is not related to the valuation of assets.
False
Test your knowledge of financial valuation with this quiz on book value and market value. Learn about the differences between the two valuation metrics and how they impact the assessment of stock value.
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