Vidyalelo
Commerce · Q161

Financial Management

Graduate and Post Graduate · Commerce · question 161

Q161

Book value is_______________.

A.
the same as market value
B.
a more accurate valuation technique than the dividend models
C.
the accounting value of the firm as reflected in the financial statements
Answer
D.
the same as liquidation value

Answer: Option C

Solution

Answer: Option C
Solution:
Book value is the accounting value of the firm as reflected in the financial statements. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities.