Stockholders' equity can be referred to as the book value of a business, since it theoretically represents the residual value of the entity if all liabilities were to be paid for with existing assets. However, since the market value and carrying amount of assets and liabilities do not always match, the concept of book value does not hold up well in practice.

1) Provide your opinion on the concept of book value does not hole up well in practice. 

2) Give examples for or against this statement.

Answer rating: 100% (QA)

my opinion the statement that the concept of book value does not hold up well in practice is true Th... View the full answer