In the FASB hierarchy of inputs to consider for assessing fair value,which is associated with Level 1?
A)Observable information on similar items.
B)Nonexistence of active markets.
C)Quoted prices on identical items.
D)Relevant economic and industry factors.

Question

Quizplus · Accepted Answer

Quoted prices on identical items are associated with Level 1 inputs, which are the most reliable and objective inputs used for assessing fair value. This means that the fair value measurement is based on readily available, observable and reliable market data, such as quoted prices on active markets for identical assets or liabilities that the entity can access at the measurement date. Therefore, Level 1 inputs provide the highest level of confidence in the accuracy of fair value measurements.

In the FASB Hierarchy of Inputs to Consider for Assessing