Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date are an example of:
A) a Level 1 input.
B) a Level 2 input.
C) a Level 3 input.
D) a Level 4 input.

Question

Quizplus · Accepted Answer

Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date are considered Level 1 inputs because they are the most objective and reliable inputs available. Level 2 inputs include quoted prices for similar assets or liabilities in inactive markets, while Level 3 inputs are unobservable inputs that must be estimated using assumptions and models. Level 4 inputs are not recognized under US GAAP.

Quoted Prices (Unadjusted) in Active Markets for Identical Assets or Liabilities