Book Value – Definition and Usage
There are several definitions associated with the term ‘Book Value’ and depending on the context of its use, determines the correct definition and proper use.
When using the term book value to refer to the accounting value of a group of assets or a specific asset, the proper term to use is carrying value. Carrying value is one form of book value and usually refers to an asset or liability group found on the balance sheet.
There are several definitions associated with the term ‘Book Value’ and depending on the context of its use, determines the correct definition and proper use.