The FASB Has Set a Hierarchy of Inputs to Consider

question 45

Multiple Choice

The FASB has set a hierarchy of inputs to consider in assessing fair value.Which of the following relates to Level 3?

• A)Quoted prices for identical items in active,liquid,and visible markets.
• B)Unobservable inputs to be used in illiquid situations.
• C)Observable information for similar items in active or inactive markets.
• D)Unobservable inputs to be used in situations where markets do not exist.

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Definitions:

Interest Income

Income earned from investments and lending activities, including accounts receivable.

Wheel Theory

A conceptual framework used to explain the development of love in a relationship, encompassing stages from initial attraction to deeper commitment.

Stages of Love

The progression through various phases in a romantic relationship, often described as including infatuation, deepening affection, and lasting commitment.

Intimacy

A personal bond characterized by closeness, familiarity, and affection or love with another individual or group.