Free Online NACVA CVA Practice Test

Prepare Your NACVA CVA Exam Questions with Free online CVA Practice Test. Get Brilliant Certified Valuation Analyst (CVA) Exam Results with Valid CVA Exam Dumps.

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Total 253 Questions | Updated On: May 14, 2024

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Question 1

Any Buy-Sell agreement, restrictions, or other similar factor relating to the right to use or sell the property will be ignored for estate gift, and generation skipping tax purposes unless the agreement meets any of the following test EXCLUDING:

A : It is a bona fide business arrangement

B : It must be a device to transfer the property to the natural objects of the transferor's bounty (such as family members) for less than adequate and full consideration in money or money's worth

C : Its terms must be comparable to similar arrangements entered into by persons in an arm's length transaction

D : It is a key player in Buy-Sell arrangements

Answer: D

Question 2

The FASB says that, for ''unobservable inputs,'' the valuation should include market participant assumptions about risk, even if this adjustment is different to determine. Interestingly, it breaks risk into following categories EXCEPT:

A : The risk inherent in a particular valuation technique

B : The risk inherent in inputs of the valuation technique

C : The explicit risk related to a particular valuation technique

D : The implicit risk related to a particular valuation technique

Answer: C,D

Question 3

The most frequently encountered reasons for needing to value debt securities are the following EXCEPT:

A : Purchase or sale for cash

B : Exchange of equity for debt, or vice versa

C : Allocating total enterprise value among classes of securities in a leverages buyout, recapitalization (including)

D : Adjusting an equity statement owned or owed

Answer: D

Question 4

A major issue in many fair value cases is:

A : Whether or not discounts and/or premiums are applicable

B : Lack of control

C : Lack of marketability

D : lack of ownership control premiums under certain specific circumstances.

Answer: A

Question 5

____________ is perhaps the most difficult task for the business appraiser.

A : Getting two or more parties with different economic and business expectations to agree on projected future benefits and the risks associated with achieving those projections.

B : Identification of partial interest.

C : Selection of enterprise value premise.

D : Estimation of invested capital

Answer: A

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Total 253 Questions | Updated On: May 14, 2024

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