Which of the Following Is the Lowest Level of the SFAS

question 9

Multiple Choice

Which of the following is the lowest level of the SFAS 157 (FASB ASC 820) fair value hierarchy?

• A) Unobservable inputs (that are corroborated by observable market data)
• B) Unobservable inputs (that are not corroborated by observable market data)
• C) Observable market-based inputs (or unobservable inputs that are corroborated by market data)
• D) Quoted market prices for identical assets or liabilities in active markets

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Definitions:

Posteffective Period

The time frame after a registration statement has been declared effective by the SEC, during which securities may be sold.

Registration Statement

A set of documents, including a prospectus, filed with the Securities and Exchange Commission (SEC) that discloses important information regarding a company's securities offering.

Prospectus

An official document that companies issue to potential investors, detailing the financial security they are offering.

Securities And Exchange Commission

The U.S. government agency responsible for regulating the securities markets and protecting investors.