SFAS 157 defines fair value as the:
A)entry price.
B)exchange price.
C)net asset value.
D)real value.

Question

Quizplus · Accepted Answer

SFAS 157 defines fair value as the exchange price, which is 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. The other options listed in the question (entry price, net asset value, real value) are not definitions of fair value as per SFAS 157.

SFAS 157 Defines Fair Value as The