أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
Not necessarily, market value may be lower or higher than the book value as market value is always exposed to fair valuations determined by market forces.
As we know that in HISTORICAL CONCEPT we take all the assets on book value but in the case of Debt we we have to pay some interest over our debt which compensate the difference between market value and book value.
not necessarily.Interest is also changing as per market conditions .Hence the value of debts.
no not at all both situation and terms are opposit becauseBook value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other hand, market value is the current price at which you can sell an asset.
