Question No. 1

According to the American institute of Certified Public Accountants (AICPA), the term financial statement refers to:

A''A presentation of internal accounting data, derived from accounting records and intended to communicate any entity's economic resources or obligations at a point in time or the changes therein for a period of time in conformity with a comprehensive basis of accounting.''

B''A presentation of financial data, including accompanying notes, derived from accounting records and intended to communicate any entity's economic resources or obligations at a point in time or the changes therein for a period of time in conformity with a comprehensive basis of accounting.''

C''A presentation of financial data, including accompanying notes, derived from accounting records and intended to communicate any entity's financial resources or obligations at a point in time or the changes therein for a period of time in reality with a brief basis of accounting.''

D''A presentation of financial data, including accompanying notes, derived from accounting records and obligations at a point in time or the changes therein for a period of time in conformity with a comprehensive basis of accounting.''

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Correct Answer: B

Question No. 2

Valuation of ___________must be specified. For example, the assignment might include language such as'' ...engaged to estimate the fair market value of the fixed assets, inventory, and goodwill, on a going-concern basis of...''

AAssets

BSecurities

CCooperatives

DPartnerships

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Correct Answer: A

Question No. 3

The primary ownership interest characteristics that need to be addressed in almost every business valuation are the following EXCEPT:

AControl or minority valuation basis (not necessarily a black-and--white issue ____there may be elements of control without absolute control

BDegree of marketability

CFair market value

DFair market value on a nonmarketable, non-controlling ownership interest basis.

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Correct Answer: C, D

Question No. 4

One unique aspect of the valuation provision in a Bu-Sell agreement, as opposed to other valuation problems, is the extreme uncertainty concerning when a future event that triggers a transaction under the agreement will occur. This is one of the key reasons why:

AIs no single approach to the problem of establishing the price?

BIs no single method for a buy-sell agreement that one can recommend as completely satisfactory for all situations

CThere is no negotiation among the parties

DIndependent outside appraisal

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Correct Answer: A, B

Question No. 5

All of the various tangible personal property valuation method and procedures can be grouped into the following approaches EXCEPT:

AThe work-in-process inventory of a professional services firm

BThe merchandise inventory of a manufacturer/processor or of a wholesale/retail company

CFinal valuation reconciliation

DFinancial asset account categories

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Correct Answer: C, D

Free NACVA CVA Exam Actual Questions

The questions for CVA were last updated On Dec 19, 2024