NACVA Exam Practice Test Instant Access - No Installation Required

Question 1

_________ is the value to some particular owner or potential owner, is found often in the context of mergers and acquisitions and in family law disputes.

AMarketable value

BControl Value

CInvestment value

DStrategic Control value

Answer : C

Question 2

The determination of which asset-based method to use in a given valuation engagement should be a function of all of the following EXCEPT:

AThe experience and judgment of the analyst

BThe quantity and quality of available data

CThe purpose and objective of the valuation

DFinancial asset account categories

Answer : D

Question 3

When using the elements of both the asset accumulation method and the capitalized earnings method in the same valuation, the analyst should pay particular attention to the selection of:

AThe required rates of return

BThe capitalization rates used in the excess earning component of the valuation

CIdentification of assets and liabilities on cost basis

DBoth A and B

Answer : D

Question 4

The marital estate comes into being upon filing for divorce. It represents the assets that must be divided according to the property laws of the state. Currently, each state adheres to either (1) ________________ or (2) _____________________.

AThe community property standard, the investment value

BThe community property standard, the equitable distribution standard

CThe family property standard, the equitable standard

DThe standard value, the equitable distribution standard

Answer : B

Question 5

Book value per share is based on the number of shares outstanding at the end of accounting period rather than the weighted average used in computing earning per share. Also, book value normally is computed without considering:

ATreasury stock

BPossible dilutive effects of conversions

CMaximum potential dilution

DAnti-dilutives and their effects

Answer : B

Question 6

Which one of the following is perhaps the most valuable source of authoritative information on a particular industry?

AFinancial data

BIndustry surveys

CBusiness press

DTrade associations

Answer : D

Question 7

Qualitative factors might also cause the required yield to be higher or lower than that based solely on the quantitative ratio analysis. Whish of the following is NOT out of such quantitative factors?

AThe competitive environment in the industry

BDepth and competence of management

CTrends in diversification of revenue sources

DTrends in diversification of strategies

Answer : D

NACVA Certified Valuation Analysts CVA Exam Practice Test