NACVA CVA Exam Practice Test Instant Access

Question 1

The analyst used __________ to quantify the value of intangible assets. The analyst estimated the current cost required for the company to recreate its current level of customer awareness, brand recognition and consumer loyalty.

AAsset accumulation method

BIncome approach

CRecreation cost method

DValuing intangibles method

Answer : C

Question 2

There is no universally accepted conclusion as to what accounts should be ''netted out'' in the estimation of net tangible asset value. For example, various analysts have interpreted net tangible assets to mean any one of the following EXCEPT:

AGross assets net of accumulated depreciation

BNet current value of the financial assets and the tangible assets less current liabilities only

CNet current value of the financial assets and the tangible assets minus all liabilities

DProbable future earnings

Answer : D

Question 3

The second step in capitalized excess earnings method is:

AEstimation of normalized level of earnings

BQuantifying the amount of excess earnings

CCapitalizing the excess economic earnings

DEstimating an appropriate direct capitalization

Answer : A

Question 4

The most common interpretation of net tangible asst value is:

AGross assets net of accumulated depreciation (i.e., current market value of the tangible assets net of economic depreciation)

BNet current value of the financial assets and the tangible assets less current liabilities only

CNet current value of the financial assets and the tangible assets minus all liabilities

DNet current value of the financial less current liabilities only

Answer : B

Question 5

The most typical procedure/s in capitalized earning method is/are all EXCEPT

AEstimate the net tangible asset value

BEstimate a normalized level of economic earnings

CQuantify the amount of excess earnings

DEstimate an appropriate indirect capitalization rate

Answer : D

Question 6

Marital dissolution cases in jurisdiction where personal rather than a marital asset and therefore needs to be separately valued from the rest of the business enterprise. This example is an application of:

AControlling ownership interest

BMerged and acquired family business

CCapitalized access earnings method

DMarket based valuation approach

Answer : D

Question 7

The most appropriate application of the excess earnings method is for the purpose of:

AAllocating total value between tangible and intangible assets

BEstimating the net asset value

CEstimating a normalized level of economic earnings

DQuantifying the amount of access earnings

Answer : A

NACVA Certified Valuation Analysts Exam Practice Test