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What is the likelihood that the market and book values of an asset or liability will differ? Why is this important?

Why is net income an unreliable indicator of a health care organization's cash position?

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The expert examine the market and book values.

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FINANCE

What is the likelihood that the market and book values of an asset or liability will differ? Why is this important?

Book value is the value reported on the balance sheet and which is the original price paid for the asset. On the other hand, market value is the rate being offered in the current period for the assets.

Assets that are highly marketable like equipment, land etc would generally have a different value from the book value. ...

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Chidi Ngene, M. Sc.
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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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