In the context of determining fair value, the exit price refers to:

A. The amount the firm would receive if it sold a given asset.
B. Amount the firm would pay if it bought an asset of the same type and condition as the one being valued.
C. Sum of the future cash flows expected to be generated by continuing to use assets.
D. None of the above.
Answer is D?

the answer is d

The correct answer is A. The exit price refers to the amount the firm would receive if it sold a given asset. This concept is used in determining the fair value of an asset, which is defined as 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. To determine fair value, one needs to consider market conditions, the type and condition of the asset, and what price it would likely fetch in an active and competitive market. By considering the exit price, one can accurately assess the fair value of an asset.

To find the answer to this multiple-choice question, you can eliminate options based on your knowledge of the topic and then choose the most appropriate choice. In this case, option A directly refers to the exit price, while option B refers to the purchase price, and option C refers to future cash flows. By process of elimination, you can conclude that the correct answer is A.