The value that represents the amount of stockholders' equity in a firm is called the
A) par value.
B) book value.
C) liquidation value.
D) market value.

Question

Quizplus · Accepted Answer

Book value represents the amount of stockholders' equity in a firm, calculated by subtracting the liabilities from the assets. Par value is the nominal or face value of a security, while liquidation value is the amount that shareholders would receive if a company were to liquidate. Market value represents the current price of a security in the market.

The Value That Represents the Amount of Stockholders' Equity in a Firm