Which of the following could describe the book value of an entity?

Question

Quizplus · Accepted Answer

The book value of an entity is the value of the entity's assets minus its liabilities. This represents the minimum value of the entity, as it assumes that all assets are sold and all liabilities are paid off. It is not the amount shareholders paid for the shares, nor is it the worth of the shares in the market. It also does not necessarily represent the maximum amount a shareholder will receive on liquidation, as this will depend on the performance of the entity and the order in which liabilities are paid off.

Which of the Following Could Describe the Book Value of an Entity