Question: Book value: Generally tends to exceed market value when fixed assets are included. Is adjusted to market value whenever the market value exceeds the stated

Book value:

  • Generally tends to exceed market value when fixed assets are included.
  • Is adjusted to market value whenever the market value exceeds the stated book value.
  • Is more of a financial than an accounting valuation.
  • Is equivalent to market value for firms with fixed assets.
  • Is based on historical cost.

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