What Is "Fair Value

question 78

Multiple Choice

What is "fair value"?

• A)The present value of the future cash flows expected to be derived from an asset.
• B)The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal.
• C)The higher of an asset's fair value less costs to sell and its value in use.
• D)The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable, willing parties.

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Definitions:

Financial Indicators

Financial indicators are quantitative measures that provide insights into the financial health, performance, and stability of an organization or business.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.

Regulatory Compliance

Adhering to laws, regulations, guidelines, and specifications relevant to business operations or activities.

Zero-Based

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," without reference to previous budgets.