Which of the Following Approaches for Determining Fair Value of Level

question 5

Multiple Choice

Which of the following approaches for determining fair value of Level 3 assets is used by the auditor?

• A)Determining appropriate model and sensitivity of model.
• B)Reviewing contracts to determine if loss is other than temporary.
• C)Performing an analysis of volume of trading activity.
• D)Performing an analysis of trades on similar assets.

---

Definitions:

Opportunity Cost

The benefit that is missed out on when choosing one alternative over another.

Moving From Point

The action of changing positions or conditions, often used in the context of shifting from one economic state or decision point to another.

Economy's Resources

The total assets including labor, capital, land, and entrepreneurship available for the production of goods and services in an economy.

Produce Only

Focused solely on the creation or manufacturing of goods.