|
Sl. |
Book Value |
Market Value |
|
1 |
Book value is the price paid for a particular asset. |
Market value is the current price at which you can sell an asset. |
|
2 |
This price never changes |
The price may be changed |
|
3 |
useful to help track profits and
losses |
It
indicates the profit (or loss) incurred. |
|
4 |
The need for book value also arises when it comes to generally accepted accounting principles |
It is not raises from generally
accepted accounting principles |
|
5 |
Sometimes creates problems for assets price being fixed |
It generates the appropriate price |