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.

Question

Quizplus · Accepted Answer

Level 1 inputs are the most reliable and transparent inputs based on quoted prices in active, liquid, and visible markets for identical items. These inputs are considered the most reliable because they are directly observable and represent actual market transactions.

The FASB Has Set a Hierarchy of Inputs to Consider