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

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.

jeff jeffy answered 2 years ago

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