Question
In: Finance
For which of the following balance sheet items will the book value and market value most likely be closest at the time the balance sheet is prepared?
For which of the following balance sheet items will the book value and market value most likely be closest at the time the balance sheet is prepared?
Select one:
a. Long-term debt
b. Common stock
c. Net fixed assets
d. Retained earnings
e. Short-term debt
Solutions
Expert Solution
d. Short-term debt
Current Assets and Current Liabilities are recorded close to their current Market Value.
Among the given balance sheet items, Short term debt falls under current liabilities. So, Short-term debt will have its book value and market value closest at the time balance sheet is prepared.
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