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:

Organizational Vision

Organizational Vision is a strategic declaration of what an organization aspires to achieve in the future, guiding its direction and decisions.

Survival Anxiety

The fear that an organization or individuals may fail to survive due to inadequate adaptation to changing environments or internal issues.

Role Models

Individuals whose behavior, example, or success is or can be emulated by others, especially by younger people.

Planned Change

A deliberate effort to improve an organization's effectiveness or efficiency through modifications in processes, policies, or technologies.