Question: Explain the difference between book value and market value. Under standard accounting rules, it is possible for a companys liabilities to exceed its assets. When

Explain the difference between book value and market value. Under standard accounting rules, it is possible for a company’s liabilities to exceed its assets. When this occurs, the owners’ equity is negative. Can this happen with market values?

Why or why not?

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Book value and market value are two different measures used to assess the value of a company and they can often diverge Book Value Definition Book val... View full answer

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