The difference between a market value balance sheet and a book value balance sheet is that a market value balance sheet:
A)places assets on the right hand side.
B)places liabilities on the left hand side.
C)does not equate the right hand with the left hand side.
D)lists items in terms of market values, not historical costs.
E)uses the market rate of return.

Question

Quizplus · Accepted Answer

A market value balance sheet lists items in terms of their current market values, while a book value balance sheet lists items at their historical cost (i.e. what they were originally purchased for). This means that the market value balance sheet is more accurate in reflecting the current value of a company's assets and liabilities.

The Difference Between a Market Value Balance Sheet and a Book