What is the difference between market value and book value?
A)The market value represents the price for which an asset could be sold at the end of its physical life whereas the book value represents the depreciated value of the asset for accounting purposes.
B)The market value represents the price for which an asset could be sold at any point in its life, whereas the book value represents the depreciated value of the asset for accounting purposes.
C)The market value represents the price for which an asset could be sold at any point in its life whereas the book value represents the actual value of an asset at the end of its useful life.
D)The market value represents the price for which an asset could be sold at the end of its physical life whereas the book value represents the price for which an asset could be sold at the end of its useful life.
E)The market value represents the price for which an asset could be sold at the end of its useful life whereas the book value represents the depreciated value of an asset for accounting purposes.

Question

Quizplus · Accepted Answer

Market value is the current price at which an asset can be sold, reflecting its perceived value by the market. Book value, on the other hand, is the value of an asset as recorded on the company's balance sheet, accounting for depreciation and amortization.

What Is the Difference Between Market Value and Book Value