Market vs.Book Value The balance sheet provides the book value of the assets,liabilities,and equity. Historical Cost Principle:Under Generally Accepted Accounting Principles(GAAP), audited financial statements of firms in the U.S. carry assets at cost. Market value is the price at which the assets,liabilities,or equity can actually be bought or sold which is a completely different concept from historical cost. 99 Market vs. Book Value n The balance sheet provides the book value of the assets, liabilities, and equity. q Historical Cost Principle: Under Generally Accepted Accounting Principles (GAAP), audited financial statements of firms in the U.S. carry assets at cost. n Market value is the price at which the assets, liabilities, or equity can actually be bought or sold , which is a completely different concept from historical cost