what is book value?

Answer 1

"Book Value" refers to the value of a car, or some other commodity as shown in the generally accepted "book" of values for that item. For example, the Kelley Blue Book or the NADA Book are the two most commonly accepted books to determine car prices. For stamps it would be the Scott Book. There are other examples but that's the general idea.

Answer 2

Book value has several meanings:
(1) It is the value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation"

(2)The term "book value" also can be defined as "the net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

(3)The term "book value" is also used to mean "the initial outlay for an investment. This number may be net or gross of expenses such as trading costs, sales taxes, service charges and so on.

(4)The term "book value" also means "the accounting value of a firm. It has two main uses:

(a). It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.

(b). By being compared to the company's market value, the book value can indicate whether a stock is under- or overpriced.


(5)Lastly the term "book value" is . used in personal finance The book value of an investment is the price paid for a security or debt investment. When a stock is sold, the selling price less the book value is the capital gain (or loss) from the investment.

Answer 3

In financial terms, "book value" is the cost or the amount one paid for its investment. Additionally, (from http://www.investopedia.com/terms/b/bookvalue.asp)

1. The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation.

2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

3. The initial outlay for an investment. This number may be net or gross of expenses such as trading costs, sales taxes, service charges and so on.

Answer 4

Generally, book value refers to Total Asset minu Total Liabilities.The Balance amount divided by the Equity Share will give you the book value per share.

Answer 5

To me book value is equal to somethings absolute auction value.

A good condition 8-10 year old used car @$2500 dollars...

A brand new average car @$25,000 dollars

The entire net worth of a corporations assets.. theoretically auctioning off all assets.. and paying off all creditors.. the remaining amount of money divided by all outstanding shares...

Auction value = book value = core value

For automobiles check out www.kbb.com

Answer 6

net worth