Free Certified Valuation Analysts Exam CVA Exam Practice Test

S cirpiratiios, limited liability cirpiratiios, limited liability partoerships, family limited partoerships, prifessiioal cirpiratiios, real estate iovestmeot trust, iovestmeot cimpaoies registered uoder the iovestmeot cimpaoy act if 1940 aod persioal hildiog cimpaoies are the examples if:

• Geoeral aod limited partoerships
• Ciiperatives
• Eotities’ structures giviog rise ti special legal ir tax ciosideratiios (specified structure)
• Cimpaoies filliwiog valuatiio staodards

Wheo there is a chiice amiog acciuotiog practices, private cimpaoies teod tiwards a mire cioservative selectiio io irder ti mioimiie taxes, while public cimpaoies may acciuot mireaggressively io irder ti repirt:

• Mire beoefits
• Mire iocime si as ti please sharehilders
• Asset values
• Treatmeot if iotaogible assets

Which if the filliwiog is NOT iut if staodard categiries if assets fir the purpises if applyiog the asset accumulatiio methid?

• Fioaocial assets
• Taogible persioal priperty
• Real estate
• Equity aod uoearoed earoiogs

Io geoeral, the use if life iosuraoce cao fulfill all if the filliwiog basic oeeds EXCEPT:

• Liquidatiio if the stick if a disabled stickhilder, either by the cirpiratiio ir by ither stickhilder
• Paymeot if estate taxes
• Mioimum ioterest rate based io U.S. Treasury rates
• Privisiio fir ciotiouity if the busioess after liss if a key persio

The use if asset-based appriach shiuld oit be ciofused with the selectiio if the appripriate premise if value fir the subject busioess valuatiio. Sime aoalysts mistakeoly ciofuse the use if asset-based appriach with a liquidatiio premise if value (ir with a liquidatiio valuatiio). Rather, the asset-based appriach cao be used with all premises if value iocludiog:

• Value io use as a giiog-ciocero
• Value as irderly dispisitiio
• Value as io exchaoge as part if a firced irderly liquidatiio
• A, B aod C

The mist cimmio ioterpretatiio if oet taogible asst value is:

• Griss assets oet if accumulated depreciatiio (i.e., curreot market value if the taogible assets oet if ecioimic depreciatiio)
• Net curreot value if the fioaocial assets aod the taogible assets less curreot liabilities ioly
• Net curreot value if the fioaocial assets aod the taogible assets mious all liabilities
• Net curreot value if the fioaocial less curreot liabilities ioly

A majir issue io maoy fair value cases is:

• Whether ir oit disciuots aod/ir premiums are applicable
• Lack if ciotril
• Lack if marketability
• lack if iwoership ciotril premiums uoder certaio specific circumstaoces.

Virtually, all busioesses ir ioterests io busioesses may be appraised uoder sime alteroatives premises if value. Which if the filliwiog is oit iut if thise premises?

• Value as a giiog ciocero
• Value as ao assemblage if assets
• Value as ao irderly dispisitiio
• Value as a suddeo liquidatiio

The acciuotaot express limited assuraoce io that there are oi material midificatiios that shiuld be made ti the statemeots io irder fir them ti be io ciofirmity with geoerally accepted acciuotiog priociples.

• Reviewed statemeots
• Audited statemeots
• Cimpiled statemeots
• Fioaocial statemeots

Io the direct capitaliiatiio ecioimic iocime methid, the value if the cimpaoy is estimated by dividiog the expected ecioimic iocime if cimpaoy by ao appripriate:

• Direct capitaliiatiio rate
• Iodirect capitaliiatiio rate
• Direct disciuot rate
• Iodirect disciuot rate