™Assets of $10 million minus liabilities of $6 million leave $4 million of accounting equity; that is not automatically liquidation value or market value.
Fundamentals
Book value
A company’s accounting assets minus liabilities, often expressed on a per-share basis.
Plain-English context
Put the definition to work.
Accounting equity is not automatically saleable asset value. Intangibles, impairments and liabilities can limit comparisons.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — financial statement guide