Question

In: Accounting

the accounting numbers on the balance sheet are referred to as______ values and, in most cases...

the accounting numbers on the balance sheet are referred to as______ values and, in most cases are different from the corresponding _____ values.

Solutions

Expert Solution

The accounting numbers on the balance sheet are referred to as Book values and, in most cases are different from the corresponding Market values.

Explanation

Book value of an asset or liability is the value stated in the balance sheet. Book value of a fixed asset is the cost of the asset minus accumulated depreciation on that asset. Whereas market value of an asset is generally taken to be either resale value or net realizable value. It happens all the time that an asset for example building may have a book value much lower than its market value because value of land increases over time but the change in value of land is not recorded in books of account.

Please note if the in the above answer the final answer does not match please change the answer to given below alternative solution.

The accounting numbers on the balance sheet are referred to as Book values and, in most cases are different from the corresponding Carrying values.

ekkarill92 answered 1 year ago
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