The Use of Unobservable Inputs Such as a Pricing Model

question 94

Multiple Choice

The use of unobservable inputs such as a pricing model or discounted cash flow is an example of a level ________ estimate.

• A) 1
• B) 2
• C) 3
• D) 1 and 3

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Definitions:

Unwritten Decisions

Actions or policies implemented within an organization that are not formally recorded or documented.

Disclosure

The action of making new or secret information known, which can be related to organizational practices, financial details, or personal data.

Goodwill

Refers to the intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.

Legal Representation

The act of having a lawyer or attorney provide advice, advocacy, and support in legal matters.