What Is a Market Value Balance Sheet and How Does

question 55

Essay

What is a market value balance sheet and how does it differ from a book value balance sheet?

---

Definitions:

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so the investment grows at an increasing rate.

Compounded Annually

A method of calculating interest in which the accumulated interest is added to the principal at the end of each year, with future interest then calculated on the new total.

Percentage Increase

A measure of the degree to which a quantity has grown in proportion to its initial value, expressed as a percentage.

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.