SOFE Exam AFE Topic 1 Question 82 Discussion

Actual exam question for SOFE's AFE exam

Question #: 82
Topic #: 1

[All AFE Questions]

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 is called:

Aface value

Bfair value

Cmarket value

Dtransaction value

Show Suggested Answer

Suggested Answer: B

by Luz at Aug 08, 2024, 09:07 PM

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Celia

6 months ago

I believe it's B) fair value because it represents the price in an orderly transaction between market participants.

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Cristina

6 months ago

I'm not sure, but I think it's C) market value because it reflects the current market conditions.

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Kathrine

7 months ago

I agree with Raymon, fair value makes sense in this context.

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Raymon

7 months ago

I think the answer is B) fair value.

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Veronika

7 months ago

I'd say the answer is E) whatever the boss tells me to put down.

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Lili

7 months ago

B) fair value, because that's what the accountants tell me to use. Who am I to question the experts?

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Kassandra

6 months ago

B) fair value, because that's what the accountants tell me to use. Who am I to question the experts?

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Marnie

6 months ago

A) face value

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Thad

7 months ago

Hmm, I'm torn between B) and C). Guess I'll just roll a dice and hope for the best!

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Man

7 months ago

I think D) transaction value is more accurate because it specifically refers to the price in a transaction.

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Haydee

7 months ago

I'm not sure, but I think it might be C) market value because it reflects the current market conditions.

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Julene

7 months ago

I'm going with B) fair value - it just sounds more professional, you know?

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Nu

7 months ago

D) transaction value, definitely! That's the price you'd get in an actual transaction, right?

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Van

6 months ago

D) transaction value. Yes, it's the actual price you would receive in a transaction.

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Barrett

6 months ago

C) market value. It represents the current value of the asset or liability in the market.

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Alaine

6 months ago

B) fair value. It's the price in a hypothetical transaction between willing parties.

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Elza

7 months ago

I agree with Marva, fair value makes sense because it's the price in a market transaction.

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Rolande

7 months ago

I think C) market value is the correct answer here.

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Deeanna

6 months ago

Fair value is also a valid option, it depends on the context.

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Nickie

6 months ago

I would go with B) fair value, it seems more accurate to me.

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Ines

6 months ago

I agree, market value is the correct term for that.

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Jannette

7 months ago

I think C) market value is the correct answer here.

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Augustine

7 months ago

B) fair value - that's the one that makes the most sense to me.

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Devorah

7 months ago

B) fair value - Yes, fair value is the correct term for that definition.

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Kenny

7 months ago

A) face value - I think it's actually fair value that is used in financial reporting.

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Marva

8 months ago

I think the answer is B) fair value.

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