December 15, 2016

Market Vs. Book Vs. Liquidation Vs. Salvage


Market value is generally the highest value of assets, though it could be lower than book value if the value of the assets has gone down in value due to market demand rather than business use. The book value is the value of the asset as listed on the balance sheet. The balance sheet lists assets at the historical cost, so the value of assets may be higher or lower than market prices. In an economic environment with rising prices, the book value of assets is lower than the market value. The liquidation value is the expected value of the asset once it has been liquidated or sold, presumably at a loss to historical cost. Finally, the salvage value is the value given to an asset at the end of its useful life; in other words, this is the scrap value.


Read more: Book Value Definition | Investopedia http://www.investopedia.com/terms/b/bookvalue.asp#ixzz4SrSYTFBw
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1 comment:

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