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Book value of asset is the value of asset shown in books of accounts while fair value of asset is the current price at which that product is selling or sellable in market.

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10y ago

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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.


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What does shrinkage means in retail?

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The difference between the cost of an asset and the accumulated depreciation for that asset is called?

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