SOFE Exam AFE Topic 2 Question 90 Discussion

Actual exam question for SOFE's AFE exam

Question #: 90
Topic #: 2

[All AFE Questions]

is the price in a hypothetical transaction at the measurement date in the market in which the reporting entity would transact for the asset or liability

AFeasible financial price

BAsset/Liability price

CPrincipal price

DExchange price

Show Suggested Answer

Suggested Answer: D

by Wade at Oct 24, 2024, 04:11 AM

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Marica

4 months ago

If this is an accounting exam, the correct answer is probably 'All of the above' - that's how they get you, right?

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Reed

4 months ago

I'm going with C. Principal price. Sounds like the price in the main market where the transaction would occur.

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Paris

3 months ago

I think B. Asset/Liability price is the most accurate description of the price in a hypothetical transaction.

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Izetta

3 months ago

I agree with you, C. Principal price does make sense as the main market price for the asset or liability.

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Yuonne

3 months ago

I'm not sure, but I think it might be A. Feasible financial price. That sounds like a reasonable price for the transaction.

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Hubert

4 months ago

I think it's D. Exchange price. That's the price at which the asset or liability could be exchanged between willing parties.

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Huey

4 months ago

B. Asset/Liability price. The question is specifically about the price of the asset or liability, so that's the best answer.

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Izetta

5 months ago

D. Exchange price seems more accurate to me. The question is about the transaction in the market, so the exchange price is the relevant one.

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Cory

3 months ago

Yes, D) Exchange price is the price in the market where the transaction would take place.

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Charlie

3 months ago

D) Exchange price

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Sarina

3 months ago

I agree, D) Exchange price makes the most sense in this context.

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Carissa

3 months ago

C) Principal price

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Karan

4 months ago

B) Asset/Liability price

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Antonio

4 months ago

A) Feasible financial price

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Charlette

5 months ago

I agree with Dulce, because it represents the price in a transaction between willing parties.

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Dulce

5 months ago

I think the answer is D) Exchange price.

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Lynelle

5 months ago

I think the answer is C. Principal price. It's the price in the principal market, right?

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Leigha

3 months ago

Yes, that's correct. The price in the market where the reporting entity would transact is the Exchange price.

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Broderick

3 months ago

Oh, I see. Thanks for clarifying. So, the answer is D) Exchange price.

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Cora

3 months ago

D) Exchange price

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Kayleigh

3 months ago

No, it's not C. Principal price. It's actually D) Exchange price.

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Albina

3 months ago

C) Principal price

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Lili

4 months ago

B) Asset/Liability price

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Brendan

4 months ago

A) Feasible financial price

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