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Is book value reported on the balance sheet?
Yes book value of any asset is the value which is shown in balance sheet of company while market value is not shown anywhere it is the price which any asset is saleable in market.
How do i calculate the cost per share from the balance sheet?
You don't. Cost per share is driven by what an investor will pay for the share. The balance sheet is just a snapshot of the company's financial position. A GAAP balance sheet won't necessarily tell you the true value of the company.
Is The book value of a fixed asset reported on the balance sheet represents its market value on that date?
It is false that the book value of a fixed asset reported on the balance sheet represents its market value on that date. Fixed assets are also known as tangible assets.
What is the difference between accounting balance sheet and economic balance sheet?
Straight from my text, the difference is that an accounting balance sheet omits significant assets and liabilities and the accounting balance sheet does not report all assets and liabilities at their market value (the accounting balance sheet records a book value; ie the dollar value paid for an item). With respect to which assets and liabilities that are omitted, I am not sure.
How do you calculate Book value per share?
Look in the Company's Balance Sheet. Total Assets -Total Liabilities ______________________ = Book Value per share Outstanding Shares
Are temporary investments are reported on the balance sheet at cost?
NO,Inventory is recorded at the lower of cost or market value.
Difference between book value per share of common stock and market value per share?
Book value per share of common stock represents the net asset value of a company divided by the number of outstanding shares, reflecting the company's equity on its balance sheet. In contrast, market value per share is the price at which shares are currently trading on the stock market, influenced by factors such as investor sentiment, market conditions, and future growth prospects. Essentially, book value is based on historical costs and accounting principles, while market value reflects current investor perceptions and expectations. This can lead to significant differences between the two values, depending on the company's performance and market conditions.
What is the difference between book value per share of common stock and market value per share and why does this disparity occur?
Book value per share of common stock represents the value of a company's equity as recorded on its balance sheet, divided by the number of outstanding shares. In contrast, market value per share reflects the price at which the stock is currently trading in the market, influenced by investor perceptions, demand, and overall market conditions. The disparity occurs because market value incorporates future growth potential, company performance expectations, and external economic factors, while book value is based solely on historical accounting data. As a result, a company's market value can be significantly higher or lower than its book value, depending on market sentiment and investor confidence.
Is inventory reported at cost or retail for balance sheet reporting?
Inventory is recorded at the lower of cost or market value.
What is more important to the decision making process between market value and book value?
market value b/c it is the true value while the book val is the val of assets, liabilities, and OE on the balance sheet
What is the face value of the share?
Share can have mutliple values at a time. Face value of share is the value written on share document while market value of share is the value at which share is currently selling in capital market. For Example: when a new share issued by company value on share is $10 which is face value. After one year of issue of share, share is selling in market at $12 which is it's market value.
Where on the balance sheet would you look to determine the market value of an asset?
Company financial statements normally don't show the market value of assets but in "Notes to financial statement" section company may provide the market value of assets.
