Question

Describe how market-value balance sheets differ from book-value balance sheets?

Answer 1

Describe how market-value balance sheets differ from book-value balance sheets?

Market value balance sheet considers the latest market values prevailing in the market.
Example:
For equity: it considers- current stock price of the company×number of shares outstanding.

For an inventory, it considers the net realizable value.

For Land and Building, it considers the latest resale value of land and Building.

Book value balance sheet considers the historical cost of assets and liabilities.

For example:
For equity: it considers- (Face value×number of shares outstanding)+retained earnings.

For an inventory, it considers the cost.

For Land and Building, it considers the book value of land and Building. That is cost at which land and building were purchased minus accumulated depreciation.