In which of the following balance-sheet entries 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 a highly liquid asset that is regularly valued at market value, meaning there is less likely to be a difference between market value and book value. Inventory and Land, on the other hand, may have vastly different market and book values, depending on factors like supply and demand, location, and deterioration. Shareholders' equity is also unlikely to have the same market and book value, as market conditions and investor sentiment can impact a company's stock price.

In Which of the Following Balance-Sheet Entries Are You Least