Book Value

Pronunciation: /bʊk ˈvæljuː/

Definitions of book value

noun the value of a company's stock according to its balance sheet account balance

Example Sentences

A1 The book value of the car was lower than expected.

A2 She checked the book value of the house before making an offer.

B1 Investors often use the book value of a company to determine its financial health.

B2 The accountant calculated the book value of the equipment for tax purposes.

C1 Analysts debated whether the book value accurately reflected the company's assets.

C2 The CEO decided to write down the book value of the company's inventory to reflect market conditions.

Examples of book value in a Sentence

formal The company's assets are recorded on the balance sheet at their book value.

informal I heard that the book value of that car is much lower than its actual worth.

slang I can't believe they sold that house for way below its book value!

figurative Sometimes we have to look beyond the book value of a person to truly understand their worth.

Grammatical Forms of book value

• plural: book values
• comparative: more book value
• superlative: most book value
• present tense: book value
• future tense: will be book value
• perfect tense: has been book value
• continuous tense: is being book value
• singular: book value
• positive degree: book value
• infinitive: to book value
• gerund: booking value
• participle: book valued

Origin and Evolution of book value

First Known Use: 1879 year

Language of Origin: English

Story behind the word: The term 'book value' originated from the accounting practice of recording assets at their original cost in a company's books.

Evolution of the word: Originally used in accounting to denote the value of an asset as recorded on a company's balance sheet, the term 'book value' has evolved to also refer to the value of an asset based on its historical cost minus depreciation, or the value of a company based on its assets and liabilities recorded in its financial statements.