Book Value Is Also Referred To As

The book value of an asset is also referred to as the asset s carrying value.

Book value is also referred to as. The book value of an asset is the value of that asset on the books the accounting books and the balance sheet of a company. The gain or loss on the sale of a plant asset is determined by comparing the market value of assets received with the of asset sold. This example is referred to as price to book value p b in which book value per share is used in the denominator.

Book value also known as carrying value or net asset value net asset value net asset value nav is defined as the value of a fund s assets minus the value of its liabilities. Book value is a good starting point because it is objective and shows a selling price or liquation value of the shares. Both of these options are taken into consideration in the book value equation.

Stockholders equity is often referred to as the book value of the company and it comes from two main sources. In contrast to book value the market price reflects the future growth potential of the company. Which of the following would not result in unearned revenue.

Rent collected in advance from tenants. Sale of season tickets to football games. The first source is the money originally and subsequently invested in the company.

Price to book value is an important measure to see how much equity shareholders are paying for the net assets value of the company. As a result book value can also. Businesses can use this calculation to determine how much depreciation costs they can write off on their taxes.

It s also known as the net book value. The book value of an asset is the asset s cost minus the accumulated depreciation since the asset was acquired. Sale of two year magazine subscriptions.