The adjusted balance sheet method of valuing a business changes the book value of net worth to reflect its actual market value.

Question

Quizplus · Accepted Answer

The adjusted balance sheet method of valuation aims to reflect the true market value of a business rather than relying solely on book values. This is achieved by adjusting the reported assets and liabilities to reflect their fair value, which in turn changes the book value of net worth.

The Adjusted Balance Sheet Method of Valuing a Business Changes