Following U.S. Generally Accepted Accounting Principles, the fair value of a stock investment should be determined using ________. Assume the stock is listed on a publicly-traded securities exchange.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, the fair value of a stock investment listed on a publicly-traded securities exchange should be determined using quoted prices in active markets for identical stocks, as these provide the most reliable measure of fair value.