The FASB Has Set a Hierarchy of Inputs to Consider

question 67

Multiple Choice

The FASB has set a hierarchy of inputs to consider in assessing fair value.Which of the following valuations are generally viewed as highly subjective?

• A)Level 1
• B)Level 2
• C)Level 3
• D)Level 4

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Definitions:

Interest Rate

The expense, depicted as a percentage of the principal sum, that a borrower must bear for the borrowing of assets from a lender.

Foreign-Currency Exchange

The conversion of one country's currency into another's, a key process in international trade and investments.

Net Exports

The disparity between what a nation exports and what it imports in total.

Import Quota

A limit set by the government on the amount or cost of products allowed to be brought into a country from abroad.