The FASB Has Set a Hierarchy of Inputs to Consider

question 120

Multiple Choice

The FASB has set a hierarchy of inputs to consider in assessing fair value. Price taken from a recent trade on the NIKKEI of an index stock would fall under which level?

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

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Definitions:

Gram

A metric unit of mass equal to one thousandth of a kilogram.

Millimeter

A metric unit of length equal to one thousandth of a meter.

Microgram

A unit of mass equal to one millionth of a gram, often used to measure very small quantities of medication.

Liter

A unit of volume equal to 1,000 milliliters or approximately 33.814 U.S. fluid ounces.