There is a clear difference between accounting value and market value of financial statement items. Market value refers to the true value of any asset, or the amount of cash that would be gained if the asset was sold (Ross et al., 2023). Accounting value, also known as book value, are values on the balance sheet for the firm's assets and usually are not what the asset is actually worth. Assets that are shown on financial statements in the U.S. tend to show assets at historical cost and what the firm actually paid for them, rather than what they are worth today (Ross et al., 2023). This is a generally accepted accounting principle (GAAP). For current assets, it is more likely that market value and accounting value would be similar because of the short and more recent period of time that current assets were bought and converted to cash. Fixed assets rarely have the same market value and book value because they are more long term and these assets are rarely worth what they were worth years ago (Ross et al., 2023). The value that is most important to a financial manager for decision-making is the market value. This is because this is the true market value of the firm which may not necessarily be connected to total assets. Instead, the most valuable assets might be things like reputation and brand name of the firm (Ross et al., 2023). value of equity or of a particular WAIT FOR PART 2 DO NOT RESPOND