Which of the Following Is the Definition of Exit Price

question 7

Multiple Choice

Which of the following is the definition of exit price per IFRS 13?

• A) 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 (e.g. a forced liquidation or distress sale);
• B) The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction;
• C) 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;
• D) The price that would be received to sell an asset or paid to transfer a liability.

---

Definitions:

Photoreceptors

Specialized cells located in the retina of the eye that respond to light, enabling the perception of vision.

Cortex

The cortex is the outer layer of the cerebrum of the brain, involved in high-level functions such as consciousness, thought, emotion, reasoning, language, and memory.

Bipolar Cells

Nerve cells in the retina that are involved in the transmission of visual signals from the photoreceptors to the ganglion cells.

Optic Nerve

The nerve that transmits visual information from the retina to the brain, enabling sight.