Which of the Following Is True Regarding "Unobservable Inputs

question 42

Multiple Choice

Which of the following is true regarding "unobservable inputs"?

• A) They pertain to level 1 prices in the fair value pricing hierarchy
• B) They do not appear on the fair value pricing hierarchy.
• C) They are higher in verifiability than level two inputs.
• D) They are inputs for which there is little market activity.

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Definitions:

Fixed Assets

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, not easily converted into cash.

Source of Cash

Any activity or operation within a business that generates cash inflow.

Inventory Acquisition

The process of obtaining and adding goods or materials to a company's stock for further sale or use.

Cash Increase

An uptick in the amount of liquid assets (cash and cash equivalents) that a company or individual has on hand.