Which term describes the exit price of an asset at the measurement date?
A) Replacement cost
B) Current cost
C) Fair value
D) Historical cost

Question

Quizplus · Accepted Answer

Fair value 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. It reflects current market conditions and represents an exit price for the asset. Replacement cost and current cost are measures of the cost to replace or reproduce an asset, and historical cost is the original cost of acquiring an asset, none of which represent the current market value or exit price of the asset.

Which Term Describes the Exit Price of an Asset at the Measurement