The FASB Has Set a Hierarchy of Inputs to Consider

question 37

Multiple Choice

The FASB has set a hierarchy of inputs to consider in assessing fair value.Which of the following valuations are generally viewed as the most subjective?

• A)Level 0.
• B)Level 1.
• C)Level 2.
• D)Level 3.

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Definitions:

Credits

Accounting entries that increase liabilities or equity or decrease assets or expenses.

Account Balances

The amounts in financial accounts, representing the net value at a particular point in time after accounting for all debits and credits.

Asset Accounts

These accounts on the balance sheet represent the resources owned or controlled by a business, which provide future economic benefits.

Revenue Accounts

Accounts that track the income generated by a company from its normal business operations, such as sales of goods or services.