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:

Control Procedures

Actions and policies implemented by an organization to ensure the integrity of its financial and operational processes.

Monitoring

The continuous observation, checking, and adjustment of a process or performance by systematically tracking key metrics or activities.

Reasonable Assurance

A high level of certainty provided through internal controls and procedures to prevent and detect errors or fraud in financial reporting.

Vulnerabilities

Weaknesses or flaws in a system that can be exploited to compromise its security or functionality.