In which of the following asset accounts are you least likely to find a difference between market value and book value?
A) Cash
B) Inventory
C) Land
D)Shareholders' equity

Question

Quizplus · Accepted Answer

Cash is typically recorded on the balance sheet at its market value and there is usually no difference between market value and book value. This is because cash is a liquid asset and its fair value equals its book value. In contrast, inventory and land are subject to fluctuations in their market values, and shareholders' equity represents the residual value of a company's assets after deducting its liabilities, which may include items recorded at their historical cost and thus differ from their current market values.

In Which of the Following Asset Accounts Are You Least