The settlement value for a liability is best described as the ______.

A. amount of proceeds received in exchange for the obligation
B. discounted value of the future cash flows that are required to satisfy the obligation
C. undiscounted amount of cash or cash equivalents expected to be paid to satisfy the obligation

Correct Answer: C

The settlement value for a liability is the undiscounted amount of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.