Book value is
A)based on historical cost.
B)equivalent to market value for firms with fixed assets.
C)more of a financial than an accounting valuation.
D)the amount a willing buyer will pay for an asset.
E)adjusted to market value whenever the market value exceeds the stated book value.

Question

Quizplus · Accepted Answer

Book value is based on historical cost, meaning it is recorded at the original cost paid for the asset rather than its current market value. This is a fundamental accounting principle that ensures consistency and reliability in financial reporting.

Book Value Is