Book value:
A)is equivalent to market value for firms with non-current assets.
B)is based on historical cost.
C)generally tends to exceed market value when non-current assets are included.
D)is more of a financial than an accounting valuation.
E)is adjusted to market value whenever the market value exceeds the stated book value.

Question

Quizplus · Accepted Answer

Book value is based on historical cost, meaning it is the original cost of an asset when it was acquired, adjusted for depreciation. This value may differ from market value, which is the current value of the asset in the marketplace.

Book Value