An asset is valued by the price that would be received by selling it in an orderly transaction between market participants on the date of measurement. Which measurement method is being used in this case?
A) Fair value
B) Historical cost
C) Present value
D) Reliable value

Question

Quizplus · Accepted Answer

This description matches the definition of fair value, 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.

An Asset Is Valued by the Price That Would Be