In Using Fair Value as a Measurement for Assets, a Company

question 167

Multiple Choice

In using fair value as a measurement for assets, a company ________.

• A) would always use level 1 inputs
• B) ideally would use level 1 inputs but if that is not possible would use the highest level of reliability possible
• C) would calculate the present value of the expected future cash flows of the asset and use that as a measure regardless of what other inputs are available
• D) would only value an asset with input levels 1 or 2 if the asset is impaired

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Definitions:

Depth

The distance from the nearest to the farthest objects in a scene, giving a three-dimensional perspective.

Cue

A signal or stimulus that guides or prompts an action, response, or decision.

Relative Displacement

A measure of the change in position of an object in relation to a reference point.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, enabling communication and response to the environment.