The FASB Has Set a Hierarchy of Inputs to Consider

question 68

Multiple Choice

The FASB has set a hierarchy of inputs to consider in assessing fair value.Which of the following relates to Level 1?

• A)Quoted prices for identical items in active,liquid,and visible markets.
• B)Unobservable inputs to be used in illiquid situations.
• C)Observable information for similar items in active or inactive markets.
• D)Unobservable inputs to be used in situations where markets don't exist.

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Definitions:

Notes Payable

A liability on a company's balance sheet representing amounts owed to creditors or banks, typically due for payment within one year or less.

Long-Term Financing

A method of financing that is typically used for investments or purchasing assets that have a lifespan of more than a year.

Human Resources Department

The division within a business that manages employee relations, recruitment, training, and benefits.

Employment

A relationship between an employer and an employee where the employee provides labor in exchange for compensation under agreed terms.