The price that would be received to sell an asset or pay off a liability is the

Question

Quizplus · Accepted Answer

The fair value is the most appropriate choice as it represents the amount that would be received to sell an asset or pay off a liability in an orderly transaction between market participants at the measurement date. It is based on observable market data and takes into consideration factors such as supply, demand, and risk. On the other hand, market value may not necessarily be the same as fair value if there are no active markets or if the transaction is not orderly. Investing value and historical value are not relevant in this context.

The Price That Would Be Received to Sell an Asset