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.

---

Definitions:

Payments

The transfer of money, goods, or services in exchange for a product or service.

Annum

A Latin word that means "year," often used to denote a period of time equal to one calendar year.

Repaid

The act of paying back money that was borrowed.

Interest Rate

The portion of borrowed funds or capital utilized that incurs a cost, traditionally mentioned as a percentage for each year.