The Fair Value of an Asset, as Defined in the Accounting

Multiple Choice

The fair value of an asset, as defined in the accounting standards, is:

A) the costs incurred to purchase an asset and make it ready for use.
B) the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date, after deducting all the costs of that transfer.
C) the price paid for an asset less any directly attributable costs.
D) the costs that would be incurred if the asset needed to be replaced.