For which of the following would one expect the book value of the asset to differ widely from its market value?
A)Cash
B)Accounts receivable
C)Inventory
D)Fixed assets

Question

Quizplus · Accepted Answer

Fixed assets such as property, plant, and equipment are often carried on the balance sheet at their historical cost, less depreciation. This book value may not reflect the current market value of the asset, which could be higher or lower depending on factors such as changes in market conditions or technological advancements. As a result, the book value of fixed assets is often significantly different from their market value.

For Which of the Following Would One Expect the Book