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Basic Question 11 of 19
The book value of an asset is designed to closely approximate its market value. True or False?
User Contributed Comments 3
| User | Comment |
|---|---|
| cong | Discern the differences between BV, NRV, MV. |
| johntan1979 | Book value is more rigid and declines over time, whereas market value is subject to the whims of irrational market participants. |
| houstcarr | well at one point in time the historical cost / book value was the market value, so with your logic that value isn't rational either |
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Learning Outcome Statements
analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets
CFA® 2024 Level I Curriculum, Volume 2, Module 7.