Which Approach Does the FASB's SFAS 157 'Fair Value Measurements

question 7

Multiple Choice

Which approach does the FASB's SFAS 157 'Fair value measurements' recommend to be used in determining fair value?

• A)The market approach
• B)The income approach
• C)The cost approach
• D)All are possible approaches which the standard suggests could be used to determine fair value

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Definitions:

Limitation

A legal restriction or time frame within which certain actions must be taken, such as filing lawsuits or making claims, to remain valid or enforceable.

Directly Liable

Refers to the legal responsibility that falls directly on an individual or entity due to their actions or omissions.

Tort Case

A legal case involving a civil wrong that causes harm or loss, leading to legal liability for the person who commits the tortious act.

Principal

The primary party involved in a transaction or agreement, often responsible for the overall terms and conditions.