Book value is the price paid for a particular asse

Book value is the price paid for a particular asse -...

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Book value is the price paid for a particular asset. This price never changes so long as you own the  asset. On the other hand, market value is the current price at which you can sell an asset. For example, if you bought a house 10 years ago for $300,000, its book value for your entire period of  ownership will remain $300,000. If you can sell the house today for $500,000, this would be the market  value. Book values are useful to help track profits and losses. If you have owned an investment for a long  period of time, the difference between book and market values indicates the profit (or loss) incurred.  Cash flow can make up the lack of traditional accounting income , because it can reflect  the repayment ability ,  profitability and Financial Flexibility of a company , from that we  can judge a company's financial condition , Operating Performance 
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Book value is the price paid for a particular asse -...

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