Final answer:
Assets on a balance sheet are listed at their book value, which is based on the original cost minus any depreciation or other adjustments. Book value is distinct from market or economic value, and it remains constant unless adjustments are made on the balance sheet.
Step-by-step explanation:
On the balance sheet, assets are listed at their book value. The book value represents the value of the asset as recorded on the company's balance sheet, which is based on historical cost minus any depreciation, amortization, or impairment costs applied to the asset. Unlike estimated, economic, or market values, the book value does not fluctuate according to market conditions or estimates of what the asset could sell for under current market conditions.
The value listed as assets on a bank's balance sheet, such as cash held in vaults or monies the bank holds at the Federal Reserve, may not physically be at the bank because of banking operations like lending and interbank transactions. Factors that might influence whether one would pay more or less for a loan in the secondary market include the borrower's creditworthiness, changes in economic interest rates, and the profitability of the borrower's business.