NACVA cva practice test

Certified Valuation Analysts Exam


Question 1

The IRC limits an individual taxpayers charitable deduction each year to a percentage of adjusted
gross income, depending on:

  • A. The value of gift
  • B. The type of gift
  • C. The fair market price of gift
  • D. Valuation advisories
Answer:

B

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Question 2

No deduction is allowed for any charitable contribution of ________ or more unless the taxpayer
substantiates the contribution by a contemporaneous written acknowledge from the donee
organization of the contribution.

  • A. $300
  • B. $400
  • C. $350
  • D. $250
Answer:

D

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Question 3

Various transactional and taxation events may occur that change the taxpayers original basis in the
property. These events usually ___________the original basis.

  • A. Increase
  • B. Decrease
  • C. Increase or decrease
  • D. It depends
Answer:

C

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Question 4

There are some allowable methods for determining the basis of property received in exchange for
other property. Which of the following is/are out those methods?

  • A. Income basis of tax on the property
  • B. If a taxpayer receives property for services, then the original basis of the property when it is received is its original price
  • C. The basis is the fair market value of the property exchanged for it, increased by any payments made or decreased by any payments received, when the two properties are of unequal value
  • D. The basis is the fair market value of the property when its is received
Answer:

C, D

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Question 5

A general category of taxable events relates to the amount of recognition of income (if any)
associated with economic benefits received by a business. Examples of this category of taxable
events include all of the following EXCEPT:

  • A. The valuation of property received, such as rents
  • B. The valuation (or the solvency/insolvency test) related to the recognition (ornonrecognition) C.A valuation that is needed when a business (whether the business is a proprietorship, corporation or partnership)
  • D. A valuation when a tax payer claims a deduction
Answer:

C, D

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Question 6

Which of the following is the primary disadvantage of the asset accumulation method?

  • A. If taken to an extreme, it can be very expensive and time consuming
  • B. It may necessitate the involvement o appraisal specialists in several asset valuation disciplines
  • C. The valuation requires the valuation of all the company assets
  • D. The value of all assets, properties, or business interests depends on their economic income- generating capacity
Answer:

A

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Question 7

Asset accumulation method can quickly quantify the effects on business value of many common
seller structural considerations, such as:

  • A. What if the seller retains the company’s cash on hand or accounts receivables?
  • B. What if seller does not retain (or leases back to the company) the operating real estate facilities?
  • C. What if seller sells the title of the patents or to some other intangible asset owned by the company?
  • D. What if seller does not legally retain any or all of the debt instruments?
Answer:

A

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Question 8

This is sometimes considered the accumulation of all other elements of economic value of business
enterprise not specifically with (or allocated to) individual tangible and intangible assts. Its analysis
and qualification is an important component in the application of asset accumulation method to a
company like Seller. What is this?

  • A. Trademark
  • B. Goodwill
  • C. Patents
  • D. Copyrights
Answer:

B

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Question 9

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.

  • A. Asset accumulation method
  • B. Income approach
  • C. Recreation cost method
  • D. Valuing intangibles method
Answer:

C

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Question 10

Because of the advanced features (protected by the several patents), Seller management estimates
that:

  • A. Seller sells more widgets than it otherwise would
  • B. Seller has a greater market share than it otherwise would
  • C. Seller’s average selling price per unit is higher than its competitors’ prices
  • D. Seller has short-term supply contract supply contract with the key supplier
Answer:

A, B, C

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