Which of the following is true regarding the difference between book value and shareholder's equity?
A)There is no difference; these terms are synonymous.
B)Book value excludes intangibles such as goodwill.
C)Shareholder's equity measures net assets.
D)Shareholder's equity is an asset; book value is a liability.
E)Book value is an asset; shareholder's equity is a liability.

Question

Quizplus · Accepted Answer

Book value differs from shareholder's equity in that book value excludes intangibles, such as goodwill.
Key Takeaway: Shareholder's equity is Total Assets ? Total Liabilities. Book value is the net tangible assets of a corporation and does not include items such as goodwill, patents, etc., that are considered intangible. The terms are not synonymous.

Which of the Following Is True Regarding the Difference Between