The difference between the market value of assets and liabilities is the definition of the

Question

Quizplus · Accepted Answer

The difference between the market value of assets and liabilities is the economic value of capital. This reflects the true value of a company's net worth based on current market conditions. The other choices are not relevant to this concept, as accounting value of capital refers to the value of a company's assets and liabilities based on accounting principles, regulatory value of capital refers to the capital required by regulators, book value of net worth refers to the value of assets minus liabilities on the company's balance sheet, and weighted book value of net worth is a similar concept that takes into account the relative riskiness of assets and liabilities.

The Difference Between the Market Value of Assets and Liabilities