Which of the Following Is the Definition of Fair Value

question 15

Multiple Choice

Which of the following is the definition of fair value per AASB 13?

• A)The amount for which an asset could be exchanged,or a liability settled,between knowledgeable,willing parties in an arm's length transaction
• B)The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
• C)The price that would be received to sell an asset or paid to transfer a liability.
• D)A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (eg a forced liquidation or distress sale).

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Definitions:

Type I Error

The incorrect rejection of a true null hypothesis, often referred to as a "false positive."

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being tested.

Test Statistic

A measurement derived from sample observations in a hypothesis test, used to determine if the null hypothesis should be discarded.

Population Mean

The average of all the values in a population, representing the central point around which the data points in the population are distributed.